It has been a busy previous couple of days for the CFPB and their fintech work. For the third consecutive day this week our lead story issues actions taken by the CFPB.
This time it’s round BNPL. The CFPB is proposing new guidelines that will primarily lump BNPL in with bank cards on the subject of shopper protections.
Director Chopra has taken a eager curiosity in BNPL since turning into the CFPB’s chief. So, we knew one thing like this was coming, we simply didn’t know what type it will take.
Principally, the CFPB is saying that BNPL suppliers want to stick to the 1968 Reality in Lending Act in the identical approach that bank card corporations do. This implies price disclosures and normal practices for dealing with disputes and issuing refunds.
A lot of the main BNPL suppliers have already got procedures in place for these sorts of issues however the CFPB is arguing that it must be uniform throughout the trade.
That is an “interpretive rule,” so no new regulatory necessities are being proposed. The company will probably be looking for feedback by August 1.
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