Buy Now Pay Later Rule is a Step Forward for Consumer Protection

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule for Buy Now Pay Later (BNPL) lenders.

“We welcome this rule as a step toward ensuring consumers have the protections that they reasonably expect from a credit card. We look forward to the CFPB’s continued work in this market,” said Nadine Chabrier, litigation and policy counsel at Center for Responsible Lending. “Like other credit card issuers, BNPL lenders will be required to investigate disputes, help facilitate returns and refunds for purchases and provide billing statements. It makes sense for consumers who use Buy Now Pay Later loans to have these protections as BNPL operates much like any other credit card.”

The CFPB is accepting comments on the interpretive rule until August 1. The rule is scheduled to go into effect 60 days after publication in the Federal Register.

The Center for Responsible Lending and Consumer Federation of America recently released a survey as part of "Issue Brief: Consumer Understanding of Buy Now, Pay Later in California."

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Press Contact: Matthew Kravitz matthew.kravitz@responsiblelending.org