The CFPB mandates equal consumer rights for buy now, pay later and credit cards. This new rule comes after a two-year inquiry and numerous complaints. Consumers can now dispute transactions and demand refunds as they do with credit cards. Major players like Affirm and Klarna welcome the regulation, claiming they already follow similar standards. However, the industry still has differences, such as inconsistent reporting to credit bureaus. The rule aims to protect consumers from potential debt pitfalls by ensuring transparency and accountability.
Buy now, pay later services must now offer the same protections as credit cards.
consumer-protection, financial-regulations
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