How One Industry Group Is Challenging the CFPB's BNPL Rule

Financial Services attorney Eamonn Moran was quoted in an American Banker article discussing the Financial Technology Association's (FTA) lawsuit against the Consumer Financial Protection Bureau (CFPB) over its interpretive rule on buy now, pay later (BNPL) products. The article explored the legal challenges to the CFPB's attempt to classify BNPL products as credit cards under the Truth in Lending Act (TILA). Mr. Moran commented on the implications of recent legal developments, including the overturning of the Chevron deference, on the CFPB's position in this case.

"I do think that the fact that we no longer have the Chevron deference potentially could mean that [the CFPB] is on shakier ground than they would have been otherwise," he said.

READ: How One Industry Group Is Challenging the CFPB's BNPL Rule (Subscription required)

Holland & Knight announced the formation of its Chevron Deference Working Team in advance of the U.S. Supreme Court's June 28, 2024, Loper decision, which overturned the Chevron deference doctrine and will lead to a period of regulatory changes and potential legal challenges for some time.