WASHINGTON–Will Congress actually act on the growing use of buy now, pay later (BNPL) solutions in the market?
It’s not likely in the near term, but there is a stronger likelihood of action in the longer term, according to one person.
As CUToday.info reported here, NAFCU sent a letter to the House Financial Services Committee Task Force on Financial Technology ahead of a hearing on the rapidly growing BNPL offerings, which allow consumers to spread out payments on purchases. The letter was sent specifically in relation to H.R. 4277, the Overdraft Protection Act of 2021, with NAFCU saying it opposed the legislation.
“I think there will be more interest in buy now, pay later after last week’s hearings,” said Brad Thaler, VP-legislative affairs with NAFCU. “I think there will be greater interest from regulators; that seemed to be the takeaway. I think Congress is trying to get a handle on what is out there. Are there areas that are blind spots that need to be addressed. But I don’t think in the short term it will get greater scrutiny from Congress.”
The Bigger Concern
As NAFCU noted in its earlier letter, Thaler said the bigger concern is that any action related to BNPL will be tied to overdraft protection legislation.
“We oppose that because of the way it could affect various courtesy pay programs offered by credit unions,” said Thaler. “That’s been floated out there for a number of years. These programs are now opt-in, so we haven’t seen congressional action or new rulemaking in this area.”