US CFPB plans to apply credit card consumer protection rules to Buy Now, Pay Later lenders, enhancing return protections.
The US Consumer Financial Protection Bureau (CFPB) plans to apply some credit card consumer protection rules to Buy Now, Pay Later (BNPL) lenders, treating them in a manner similar to credit cards under the Truth in Lending Act. This move aims to enhance consumer protections when returning products. BNPL apps allow interest-free installment payments, but consumers often lack clarity on lenders' assistance in case of returns or cancellations. The CFPB will introduce a new rule in 60 days, requiring lenders to address disputes and cover refunds.
May 22, 2024
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