WASHINGTON—The CFPB, under the Trump Administration, has pulled back from enforcing its rule targeting buy now, pay later services.
In an email announcement Tuesday, the agency explained the reasons for its decision.
The CFPB said the Bureau will “keep its enforcement and supervision resources focused 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.”
The Bureau added it is also contemplating rescinding the BNPL rule.
The BNPL rule classified BNPL providers as credit card issuers subject to the Truth in Lending Act. Fintech lenders had been required to comply with more stringent consumer protections, including standardized disclosures, refund processing and formal dispute investigations.