Buy Now, Pay Later Needs Credit Card-Like Oversight, CFPB Says
- Regulator clarifies which rules apply to the installment loans
- CFPB director wants to prevent ‘sidestepping’ regulations
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Buy now, pay later lenders such as Block Inc.’s Afterpay, Affirm Holdings Inc. and Klarna Bank AB should be treated in some ways like credit-card providers, according to one US financial regulator.
The US Consumer Financial Protection Bureau published a new interpretation of existing laws and regulations on Wednesday to make clear that, like credit-card providers, BNPL firms must investigate disputes, refund returned products or voided services, and provide billing statements.