The Consumer Financial Protection Bureau said this week that it will not prioritize enforcement of a 2024 rule defining lenders who provide buy now, pay later products as credit card providers under the Truth in Lending Act.
The CFPB issued the interpretive rule under former Director Rohit Chopra, alleging that its decision to regulate BNPL products as credit card products was consistent with Regulation Z, which implements the Truth in Lending Act. The American Bankers Association was among the groups that criticized the CFPB’s actions, saying the rule should gone through the statutorily required public notice and comment process for new regulations.
In a brief statement yesterday, the CFPB announced its decision to deprioritize enforcement of the rule, instead focusing on “pressing threats to consumers, particularly servicemen and veterans.”
