CFPB Deprioritizes Enforcement on BNPL Regulation
The CFPB "will not prioritize enforcement actions" under the Truth in Lending Act (Regulation Z) related to the use of digital user accounts to access "Buy Now, Pay Later" ("BNPL") loans.
In the public statement, the CFPB stated that it is "contemplating taking appropriate action to rescind Buy Now, Pay Later." Under the Biden Administration, the CFPB issued an interpretive rule clarifying that Subpart B of Regulation Z applied to BNPL providers in the same way that the regulation applied to conventional credit card providers, including regulations related to billing disputes, refunds for returned products or canceled services and disclosures such as periodic billing statements. (See related analysis.)
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