CFPB Keeps to its Word by Issuing Additional Buy Now, Pay Later Guidance

Financial Services attorneys Eamonn Moran and Leonard A. Bernstein co-authored an article in Westlaw outlining the rapid growth of the Buy Now, Pay Later (BNPL) market driven by an increase in online and app-based shopping amid the COVID-19 pandemic. They elaborated on the regulatory scrutiny the BNPL sector is now facing especially from states and the Consumer Financial Protection Bureau (CFPB), which are working to bring BNPL products under the purview of existing financial laws and regulations. The article further delves into the issuance of interpretive rules by the CFPB aimed at aligning BNPL services with traditional credit product protocols, highlighting the complexities this regulatory landscape imposes on the operational practices of BNPL providers and their imperative to adeptly adjust to these evolving requirements.

The attorneys also published a Holland & Knight alert on this topic.

READ: CFPB Keeps to its Word by Issuing Additional Buy Now, Pay Later Guidance