This article delves into the evolution and regulation of Buy Now, Pay Later (BNPL) products, which allow consumers to make purchases and pay over time. Hosted by Alan Kaplinsky with insights from Ballard Spahr Partners Michael Guerrero and Joseph Schuster, the discussion begins with an overview of BNPL's structure, highlighting its benefits for consumers, merchants, and creditors. The article then shifts focus to the regulatory landscape, particularly the Consumer Financial Protection Bureau's (CFPB) recent interpretive rule that aligns BNPL products with credit cards, thereby imposing the same regulations under the Truth in Lending Act (TILA) and Regulation Z. The complexities of compliance for BNPL providers are examined, alongside the CFPB's concerns regarding these offerings. Additionally, the potential for legal challenges against the CFPB's rule is considered, particularly in light of recent Supreme Court decisions and state law implications.
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