CFPB Backs Off Buy Now, Pay Later Oversight, Signals Repeal of Rule

Financial Services attorney Eamonn Moran was quoted in a National Law Journal article discussing the Consumer Financial Protection Bureau's (CFPB) recent decision to step back from enforcement of its Buy Now, Pay Later (BNPL) rules. The CFPB had previously issued interpretive guidance treating BNPL lenders like credit card issuers, but the agency is now reconsidering this approach amid arguments that BNPL products differ significantly from traditional credit cards. Mr. Moran noted the chief criticism of the CFPB's regulatory framework was precisely that it did not distinguish BNPL and credit card services.

"I think one of the main challenges here is the agency failed to sufficiently calibrate and differentiate between the two," he said.

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