Brian Reiss’ Post

This is a major expansion, in my opinion. I think this may be the first time the CFPB takes formal action to extend some obligations that typically only apply to “traditional” credit card lenders to the BNPL industry. I am curious to see how this develops. https://lnkd.in/e6xQFeEY

On The Radar: The CFPB issued an interpretive rule confirming that Buy Now, Pay Later (BNPL) lenders are credit card providers. BNPL lenders must now provide consumers with key legal protections, including the right to dispute charges and demand a refund. This ruling is part of the CFPB's initiative to bring consistency to the rapidly expanding Buy Now, Pay Later market. https://bit.ly/4c2th5s

The expansion of BNPL compliance continues! The CFPB just released its interpretative ruling that is intended to apply Reg Z credit card billing protections to BNPLs. The ruling turns on the interaction of Reg Z's definitions of card issuer, creditor and credit card, as applied to closed-end loans, which has its roots in the Fair Credit Billing Act of 1974. My question is, what precedent will this set for other app/digital accounts that, directly or indirectly, afford consumers access to other forms of credit (whether open-end or closed-end)?

Very interesting - Reg Z now applied to BNPL products... very card-like action by the Consumer Financial Protection Bureau. I used to work in credit card disputes and know how challenging it can be to abide by all the requirements, given the unique nature of each dispute; it's certainly not a cookie cutter straightforward process sometimes - my advice to anyone confused by #TruthInLending - seek expert help before you even inadvertently violate the regulation. #RegZ #BNPL #CFPB #dispute

The CFPB has issued a rule that extends regulatory protection to Buy Now, Pay Later (BNPL) financing, including the right to dispute charges.    What this means for consumers: You can dispute BNPL charges. You have the right to demand a refund from your BNPL lender after returning the merchandise.   What this means for lenders: An investigation must be conducted when disputes are initiated. Payments must be paused during the investigation. Refunds must be issued when consumers return goods or cancel services. QFD® has been ensuring our clients stay compliant with built-in regulatory guidelines. Even with this change, we've got you covered ✅ #FraudandDisputes #DisputeManagement #AutomatedDisputeManagement #FraudManagement #FinTech

Credit card users appreciate the recourse options afforded to them when making purchases. Returns have been the bane for many BNPL users, so this is an important development. Not only will consumers be better protected, it could force a level playing field across payment options and spur competition. #bnpl #datosinsights #alternativepayments #fintech

Intriguing news from the CFPB today! Starting in 60 days, BNPL transactions must be handled the same as Credit Card transactions in account holder disputes. Luckily, Quavo's QFD and DRE (Dispute Resolution Experts) solutions are ready to tackle this new requirement flawlessly. Don't hesitate to contact us for assistance with resolving this matter! #Quavo #CFPB #FraudandDisputes

The CFPB has hit the ground running after their SCOTUS victory. The CFPB has issued an interpretive rule that confirms that Buy Now, Pay Later (BNPL) lenders are credit card providers because the digital user accounts they issue constitute ‘credit cards’ under Regulation Z. As such, lenders must provide consumers some key legal protections and rights that apply to conventional credit cards in regards to disputes, refunds, and billing statements. Typically, BNPL products do not involve a finance charge and are repayable in four or fewer installments, therefore many provisions of Regulation Z do not apply. The interpretative rule makes clear this is no longer the CFPB's opinion. You can read the interpretative rule in the linked post. #CFPB #compliance #creditunions #cusos #BNPL

CFPB Takes Action to Ensure Consumers Can Dispute Charges and Obtain Refunds on Buy Now, Pay Later Loans "...Agency’s interpretive rule addresses Buy Now, Pay Later lender obligations to investigate disputes and refund charges.." #bnpl #creditcards #rulemaking #disputes #refunds #consumercredit Consumer Financial Protection Bureau Rohit Chopra

Interesting take by CFPB: "Today’s interpretive rule describes how Buy Now, Pay Later lenders meet the criteria for credit card providers, under the Truth in Lending Act. For consumers, this means Buy Now, Pay Later lenders must: Investigate disputes: Buy Now, Pay Later lenders must investigate disputes that consumers initiate. Lenders must also pause payment requirements during the investigation and sometimes must issue credits. Refund returned products or cancelled services: When consumers return products or cancel services for a refund, Buy Now, Pay Later lenders must credit the refunds to consumers’ accounts. Provide billing statements: Consumers must receive periodic billing statements like the ones received for classic credit card accounts". https://lnkd.in/dyFdiTDG