CFPB takes action to ensure customers can dispute charges and obtain refunds on Buy Now, Pay Later loans

The Consumer Financial Protection Bureau has issued an interpretive rule that confirms that Buy Now, Pay Later lenders are credit card providers. Accordingly, Buy Now, Pay Later lenders must provide consumers some key legal protections and rights that apply to conventional credit cards. These include a right to dispute charges and demand a refund from the lender after returning a product purchased with a Buy Now, Pay Later loan. The CFPB launched its inquiry into the rapidly expanding Buy Now, Pay Later market more than two years ago and continues to see consumer complaints related to refunds and disputed transactions. This action will help bring consistency to this market.

Read the full press release from the CFPB here.