VitalLaw, March 28, 2022, CONSUMER CREDIT—CFPB receives public comments on ‘buy now, pay later’ programs
The Consumer Bankers Association (CBA) and the National Community Reinvestment Coalition (NCRC) have responded to the Consumer Financial Protection Bureau’s request for public comment on “buy now, pay later” (BNPL) products and business practices. BNPL credit is a deferred payment option, allowing consumers to purchase an item and split its price into smaller installments, generally paying a down payment at the time of checkout and paying the remaining balance over time. NCRC reports that “BNPL services have gained substantial adoption among consumers and are now a commonplace alternative in online shopping carts,” noting that more than 45 million consumers were active users by the end of 2021, accounting for the facilitation of approximately two percent of all online retail sales.
