It has been a busy last few days for the CFPB and their fintech work. For the third consecutive day this week our lead story concerns actions taken by the CFPB.
This time it is around BNPL. The CFPB is proposing new rules that would essentially lump BNPL in with credit cards when it comes to consumer protections.
Director Chopra has taken a keen interest in BNPL since becoming the CFPB’s leader. So, we knew something like this was coming, we just didn’t know what form it would take.
Basically, the CFPB is saying that BNPL providers need to adhere to the 1968 Truth in Lending Act in the same way that credit card companies do. This means fee disclosures and standard practices for handling disputes and issuing refunds.
Most of the leading BNPL providers already have procedures in place for these kinds of things but the CFPB is arguing that it needs to be uniform across the industry.
This is an “interpretive rule,” so no new regulatory requirements are being proposed. The agency will be seeking comments through August 1.
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