The Consumer Financial Protection Bureau’s Report on Buy-Now-Pay-Later (BNPL): What are the Takeaways and the CFPB’s Expected Next Steps?

Consumer Finance Monitor

The CFPB’s growing interest in and scrutiny of BNPL comes at a time when the BNPL industry is experiencing rapid growth. That makes it imperative for both companies currently offering BNPL products and companies considering whether to enter into the BNPL market to be aware of the practices that are likely to receive increased CFPB scrutiny and how future CFPB initiatives involving BNPL could impact the industry. After providing an overview of the report, we discuss its key findings, the discrete consumer harms and risks identified by the CFPB, how the CFPB might use its supervisory, regulatory, and enforcement authority in the BNPL market and the likelihood of such use, and state law enforcement and other state activity involving BNPL.

Alan Kaplinsky, Senior Counsel in Ballard Spahr’s Consumer Financial Services Group, hosts the conversation, joined by Michael Guerrero, John Culhane, Lisa Lanham, and Michael Gordon, partners in the Group.