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ARTICLE · 28 JANUARY 2022

CFPB Requests Comments On "buy Now, Pay Later"

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On January 24, the CFPB issued a notice and request for comment in the Federal Register regarding the Bureau's inquiry into "buy now, pay later" or BNPL providers.

United StatesConsumer Protection
Moorari K. Shah
Moorari K. Shah
A.J. Dhaliwal
A.J. Dhaliwal
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On January 24, the CFPB issued a notice and request for comment in the Federal Register regarding the Bureau's inquiry into "buy now, pay later" or BNPL providers.  As discussed in a Consumer Finance and Fintech post last month, the CFPB issued a series of "market monitoring" orders to five companies offering BNPL credit in order to collect information on the risks and benefits of these fast-growing loans.  According to the notice, the information obtained through this latest request will "help the Bureau better understand how consumers interact with BNPL providers, and how BNPL business models impact the broader e-commerce and consumer credit marketplaces."

Putting it Into Practice:   The Bureau's latest inquiry appears to signal another step, or at least an intent, to regulate BNPL directly through rulemaking or through enforcement.  As with market monitoring activity, the CFPB can use the information gathered from this request for any purpose, such as the

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