CFPB expands federal protections for BNPL users, industry faces increased regulation and potential litigation

From CNBC: 2024-05-22 07:00:01

The Consumer Financial Protection Bureau announced that Buy Now, Pay Later (BNPL) users will now have the same federal protections as credit card users, including refunds, dispute investigations, and fee disclosures. The agency aims to ensure consistent application of these rules across the industry. BNPL industry’s surging debt and potential litigation ahead are key concerns.

BNPL providers anticipate greater regulation as CFPB implements rules similar to credit cards, ensuring consumer protection. Some providers resist the rule, citing lower customer risk compared to credit cards and pushing for a more tailored framework. Litigation possibility looms as BNPL companies weigh legal action against the new rule, similar to the challenge faced by credit card late fee cap rule.



Read more at CNBC: Buy now, pay later firms must comply with U.S. credit card laws