The Consumer Financial Protection Bureau will have to use a variety of tools to oversee buy now, pay later products because federal consumer protection laws will not always apply to the fast-growing financing sector. The CFPB said it plans to look into new regulations and crafting advisory opinions to push BNPL providers to update their operations. The CFPB can also use its UDAAP powers to regulate the industry, especially through enforcement. “UDAAP applies to a lot, and I think part of the CFPB’s push recently is to try to extend statutes to where you didn’t think they applied,” said Allison Schoenthal, co-chair of the Banking and Consumer Financial Services practice, while speaking with Bloomberg Law.
In The Press September 16, 2022