CFPB says “buy now, pay later” needs regulation similar to credit cards

Buy now, pay later lenders such as Bullock CorporationAfterpay,<-rte-company state="{"_id":"0000018f-a003-de3b-adcf-faa3fca40001","_type":"00000160-4b23-d8bd-adfd-4b0308f.d}. -rte-company> and<-bsp-bb-link state="{"bbHref":"bbg://securities/0096150D%20SS%20Equity","_id":"0000018f-a003-de3b-adcf-faa3fca40002 " ,"_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">Klarna Bank AB-bsp-bb-link> should be treated like a credit card provider in some respects, according to a US financial regulator.

USA <-bsp-bb-link state="{"bbHref":"bbg://news/topics/CFPB","_id":"0000018f-a003-de3b-adcf-faa3fca40005","_type":" 00000016b -944a-dc2b-ab6b-d57ba1cc0000"}">The Consumer Financial Protection Bureau – bsp-bb-link> released a new interpretation of existing laws and regulations on Wednesday, making it clear that, like credit card providers, BNPL companies must investigate disputes, refund returned products or ineffective services, and Provide bill.

CFPB Director Rohit Chopra

Photographer: Tierney L. Cross/Bloomberg

This means that BNPL companies should be treated more like those offering credit cards, but not entirely: the CFPB did not interpret the existing framework to say…

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