CFPB to Regulate Buy Now, Pay Later Services Like Credit Cards
TL;DR Summary
The Consumer Financial Protection Bureau (CFPB) has issued a rule classifying Buy Now, Pay Later (BNPL) services as credit card providers, requiring them to investigate disputed purchases, provide refunds, and send billing statements. This move aims to regulate BNPL services like Klarna, Afterpay, and Affirm, which have grown popular as alternatives to credit cards. While some BNPL companies claim they already meet these standards, they argue that BNPL differs fundamentally from credit cards. The new regulation seeks to address concerns about overspending and debt accumulation associated with BNPL services.
- Buy now, pay later services have to act more like credit card providers now The Verge
- CFPB proposes new BNPL protections Axios
- Consumer watchdog to regulate ‘buy now, pay later’ lenders as credit cards The Hill
- Buy now, pay later companies must adhere to credit card standards, consumer agency says The Associated Press
- CFPB Takes Action to Ensure Consumers Can Dispute Charges and Obtain Refunds on Buy Now, Pay Later Loans Consumer Financial Protection Bureau
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