CFPB Imposes Credit Card Rules on Buy Now, Pay Later Lenders

New regulations mandate consumer protections for BNPL users, including the right to dispute charges and request refunds.

The Consumer Financial Protection Bureau (CFPB) will classify BNPL lenders as credit card providers under the Truth in Lending Act.
BNPL companies must now investigate disputes, provide refunds for returned products, and issue periodic billing statements.
The new rule aims to standardize consumer protections across the BNPL sector, which saw $75 billion in online spending in 2023.
Major BNPL providers like Affirm and Klarna have expressed support for the regulations, though some argue BNPL is fundamentally different from credit cards.
The rule will take effect in 60 days, with the CFPB accepting public comments until August 1.