WASHINGTON—The CFPB has issued a new blog post on buy now, pay later (BNPL) and credit reporting that reviews the harms associated with BNPL providers failing to furnish data to consumer reporting agencies, and recommends three specific changes to the way in which BNPL data is reported.
As the public awaits the Bureau's official report on BNPL, expected in the coming months, the blog post provides “key insights” into what recommendations may be present in the final report, NAFCU stated.
The Recommendations
The CFPB recommendations include:
- An industry-wide adoption of standardized BNPL furnishing codes and formats appropriate to the unique characteristics of the product
- Consumer reporting companies incorporating BNPL data into core credit files as soon as possible to ensure BNPL data is accurately reflected on consumer reports
- Scoring companies and lenders building and calibrating models that account for BNPL loans' unique characteristics