Buy-now, pay-later refunds get oversight by CFPB, the consumer watchdog agency
CFPB Cracks Down on BNPL Refunds: Fair Play?
The Consumer Financial Protection Bureau (CFPB) announced it will start regulating buy-now, pay-later (BNPL) companies like credit card providers under the Truth in Lending Act. This regulation, effective in two months, aims to ensure that BNPL users receive similar protections as credit card holders, including prompt refunds for returns, regular billing statements, and the ability to pause payments during disputes.
This shift comes as BNPL services, which allow consumers to split purchases into interest-free installments without a credit check, have surged in popularity. However, issues like delayed refunds and unresolved disputes have been problematic for consumers. The CFPB's new oversight intends to address these issues, ensuring fair treatment and transparency in the rapidly growing sector.
When will the new regulations treating BNPL companies as credit card providers under the Truth in Lending Act take effect?
The new regulations that classify buy-now-pay-later (BNPL) companies as credit card providers under the Truth in Lending Act will take effect in two months from the announcement made by the Consumer Financial Protection Bureau on May 22, 2024.
Which federal agency announced the oversight changes for BNPL companies, and who is the director of this agency?
The federal agency that announced the oversight changes for Buy Now, Pay Later (BNPL) companies is the Consumer Financial Protection Bureau (CFPB). The director of this agency is Rohit Chopra.