The Consumer Financial Protection Bureau issued an interpretive rule that says “buy now, pay later” lenders are credit card providers.
CFPB rule says BNPL lenders are credit card providers
May 23, 2024 / By ICBA
The Consumer Financial Protection Bureau issued an interpretive rule that says “buy now, pay later” lenders are credit card providers.
The Consumer Financial Protection Bureau issued an interpretive rule that says “buy now, pay later” lenders are credit card providers.
Details: The rule requires BNPL lenders to provide consumers some key legal protections that apply to conventional credit cards, including a right to dispute charges, demand refunds for returned products, and receive billing statements. Comments on the interpretive rule are due by Aug. 1.
ICBA Position: ICBA has called for greater parity between nonbank BNPL providers and more traditional credit products. In a 2022 comment letter, ICBA called on the CFPB to incorporate BNPL products into a regulated ecosystem and provide for consumer disclosures and protections on par with the Truth in Lending Act.
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