CFPB Will Deprioritize Enforcement of Rule on Buy Now, Pay Later Loans

The CFPB announced that it will not prioritize enforcement under a prior determination that certain digital “by now, pay later” (BNPL) loans were subject to some of the same rules as credit cards.

In 2024, the CFPB promulgated an interpretive rule stating that—under the Truth in Lending Act and Regulation Z—BNPL loans which are accessed through digital user accounts are subject to some of the rules applicable to certain types of credit card products (previously discussed here).

In the new announcement, the CFPB stated that this decision will allow it to focus on more pressing threats, and that the agency is considering further action to fully rescind the BNPL rule.