America’s Credit Unions: BNPL rule doesn’t go far enough
Trade group says consumers should be required to show an ability to repay
The Consumer Financial Protection Bureau’s rule governing Buy Now, Pay Later purchases does not go far enough in protecting consumers, Carrie Hunt, America’s Credit Unions chief advocacy officer said Wednesday.
The CFPB released an interpretive rule on Wednesday that provides BNPL users with the same protections they would receive if they had used a credit card.
“When consumers check out and choose Buy Now, Pay Later, they don’t know if they will get a refund if they return their product or whether the lender will help them if they didn’t get what was promised,” CFPB Director Rohit Chopra said, as he announced the rule. “Regardless of whether a shopper swipes a credit card or uses Buy Now, Pay Later, they are entitled to important consumer protections under longstanding laws and regulations already on the books.”
The CFPB said that the rule will require BNPL providers to:
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