The Consumer Financial Protection Bureau (CFPB) has shifted its focus away from buy-now-pay-later (BNPL) enforcement actions, as announced on May 6. The agency clarified that it will not prioritize enforcement based on an interpretive rule issued in May 2024. This rule outlined the conditions under which BNPL creditors could be classified as card issuers under the Truth in Lending Act, imposing various legal obligations.
The CFPB emphasized that while it is de-prioritizing this area, it will continue to concentrate its enforcement and supervision efforts on protecting service members and veterans, among other consumers. The agency has consistently stated its intention to address issues affecting military-affiliated consumers, although specific risks have not been detailed.
This topic is set to be discussed at the upcoming AFSA Independents Conference during several committee meetings.