Tag Archives: buy now pay later

CFPB

Blog: CFPB Abandons Consumers to Abuses of Buy-Now-Pay-Later Loans

Last week, the Trump CFPB announced plans to stop enforcing its previously issued Buy-Now-Pay-Later (BNPL) interpretive rule, which improves the price transparency of these loans to help people understand the real costs, fees, and charges that can accrue. This step risks amplifying the harms of BNPL loans, which include lower credit scores, lost bank accounts, and predatory fees. And it represents yet another example of the Trump CFPB actively siding with predatory lenders.

News Release: Nearly 100 Groups Support the CFPB’s “Buy Now Pay Later” Proposal, Which Will Protect Consumers from Harmful Practices

Today, nearly 100 consumer advocacy, civil rights and community organizations and academics submitted a supportive comment on the Consumer Financial Protection Bureau’s (CFPB) Buy Now, Pay Later (BNPL) Interpretive Rule. These groups strongly support the CFPB’s proposal, which simply clarifies that accounts used to access BNPL credit are credit cards that must comply with credit card rules governing disputes, errors, periodic statements and disclosures. Those protections will enhance the safety of BNPL credit and make it easier for consumers to manage their finances.