March 15, 2022

American Banker Quotes Andrew Bigart on Regulation of the Buy Now/Pay Later Loan Industry

1 min

On March 15, 2022, Andrew Bigart was quoted in American Banker on regulation of the buy now/pay later (BNPL) loan industry. According to the article, the speed at which this industry is evolving could prompt the Consumer Financial Protection Bureau (CFPB) to action once the deadline for receiving consumer comments ends on March 25.

BNPL loans are covered under the Dodd-Frank Act’s protections for deceptive and abusive lending practices enforced by the CFPB. Total complaints filed with the CFPB and the Better Business Bureau about BNPL loans are still relatively low compared with other financial services products, but reports of problems with BNPL products have increased sharply in the past two years.

"There’s always uncertainty about how laws and regulations will apply to new products, but it’s obvious that the CFPB won't wait long to deal with BNPL loans, to make sure consumers understand these products and that they’re not being harmed," said Bigart.