The Consumer Financial Protection Bureau will now enforce credit card-like rules on buy now, pay later lenders. This move aims to bring more oversight to the booming sector. Major BNPL players like Affirm and Klarna will need to investigate disputes and issue refunds. These rules offer more consistency and protection for consumers. This change only applies to the "pay in four" installment plans. BNPL loans saw a substantial increase in 2023. The CFPB's action comes amid broader scrutiny of tech encroaching into finance.
New rules ensure buy now, pay later lenders adhere to credit card-like protections.
Consumer Protection, BNPL
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