The entry of the headquarters of the Consumer Financial Protection Office (CFPB) is seen during a demonstration on February 10, 2025 in Washington, DC.
Anna Moneymaker | Getty images
For the third time under President Donald Trump, the Consumer Financial Protection Bureau withdrew from the application of a key rule, this time targeting the purchase now, pay the subsequent services.
The CFPB said in a Note on Tuesday That he will not favor the application of a rule, established during the presidency of Joe Biden, who ranked BNPL suppliers as credit card issuers submitted to the Truth Act in loans. Fintech lenders had been required to comply with the stricter protections of consumers, including standardized disclosure, treatment of reimbursements and formal surveys on disputes.
Affirm and other BNPL companies had expressed opposition to the requirement for billing, arguing that it to confuse And add an unnecessary friction.
“Require that BNPL suppliers comply with the rules designed for open end credit cards create challenges of conformity and confusing the results for consumers,” said affirmation in an official comment letter, urging the CFPB to adopt rules that reflect the way consumers really use BNPL products.
The CFPB seeks to go even further because it plans to completely cancel the rule, citing the need to concentrate resources on “pressing threats to consumers”, in particular members of the service, veterans and small businesses.
In October, The Financial Technology Association, which represents the main BNPL players, continued the CFPB, claiming that the agency was exceeded by imposing credit card -type restrictions through a rather than formal interpretation rule.
The CFPB opinion comes while new consumption data shows mounting pressures on the market.
A Bankrate Survey published Monday have found that almost half of BNPL users were faced with financial problems linked to these services. As the use increases, in particular for essential elements such as grocery store, missed payments also increase.
Affirm should announce quarterly results Thursday. The Klarna rival is on file to make public, but delayed its IPO last month after the announcement by President Trump to bring new prices to the financial markets.
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