In the Headlines
May 6, 2025
CFPB Won't Enforce Rule Classifying BNPL as Credit Cards
American Banker
Financial Services attorney Eamonn Moran was quoted in an American Banker article discussing the Consumer Financial Protection Bureau's (CFPB) decision not to enforce a 2024 interpretive rule classifying Buy Now, Pay Later (BNPL) loans as credit cards. Mr. Moran noted that though the rule has not been officially rescinded, the CFPB's enforcement reprieve offers BNPL providers much-needed certainty and allows them to avoid costly operational changes. He also highlighted the relief this shift brings to financial technology (FinTech) companies facing regulatory challenges with BNPL products.
"I think FinTechs can breathe another sigh of relief knowing that they may not need to 'fit a square peg in a round hole' with the imposition of credit card protections on BNPL products for which they may be at least somewhat ill-fitted," he said.
READ: CFPB Won't Enforce Rule Classifying BNPL as Credit Cards (Subscription required)
"I think FinTechs can breathe another sigh of relief knowing that they may not need to 'fit a square peg in a round hole' with the imposition of credit card protections on BNPL products for which they may be at least somewhat ill-fitted," he said.
READ: CFPB Won't Enforce Rule Classifying BNPL as Credit Cards (Subscription required)