WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) announced a significant policy adjustment, deprioritizing enforcement actions associated with the Truth in Lending (Regulation Z) concerning the “Buy Now, Pay Later” (BNPL) loan access regulation. This decision marks a shift in the Bureau’s strategy as it reallocates resources to address consumer threats with a greater impact, particularly for servicemen, veterans, and small businesses.
Under the regulation, enacted on May 31, 2024, oversight had focused on digital user accounts facilitating BNPL services. However, CFPB officials state that this regulatory pivot will better align their efforts with the agency’s broader mission of protecting hard-working American taxpayers. The Bureau is considering taking steps to fully rescind the BNPL-focused regulation.
A spokesperson for the CFPB emphasized the need to prioritize pressing consumer threats and to provide targeted support for groups such as active-duty military, veterans, and financially vulnerable small business owners. This policy review reflects ongoing deliberations on how best to allocate enforcement and supervision capabilities in a rapidly changing financial landscape.
While the BNPL market has seen explosive growth, advocates of regulatory adjustments argue that heightened focus on other consumer protections will yield more meaningful benefits for broader segments of the population. Meanwhile, businesses and consumers engaged in BNPL services will await further developments as the CFPB continues its contemplation of the regulation’s future.
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