The Consumer Financial Protection Bureau (CFPB) has issued a new rule mandating that buy now, pay later companies must provide consumers with the same legal rights and protections as credit card lenders. This includes the ability to demand refunds and dispute transactions. The regulation comes after a two-year inquiry into the short-term lending industry, sparked by numerous consumer complaints. Major players like Affirm and Klarna have welcomed the regulation, which aims to create consistent industry standards. Despite this, significant differences remain between credit card lending and buy now, pay later loans, such as the reporting of loans to credit bureaus. The CFPB's rule is seen as a significant step in protecting consumers.
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