Amid a general relaxation of financial-enforcement actions under the Trump administration, the Consumer Financial Protection Bureau says it no longer will prioritize enforcement of buy now, pay later products as if they were credit card products.
Announced Tuesday, the change reverses a CFPB position from a year ago that maintains buy now, pay later users have the same protections as credit card users under the Truth in Lending Act. And, the CFPB says, it is considering additional action to “rescind buy now, pay later,” though it doesn’t say what that possible action specifically refers to.
The CFPB now says its enforcement and supervision actions will focus on “pressing threats to consumers, particularly servicemen and veterans. The Bureau takes this step in the interest of focusing resources on supporting hard-working American taxpayers, servicemen, veterans, and small businesses.”