Buy Now, Pay Later Companies Get CFPB Enforcement Reprieve (1)

The Consumer Financial Protection Bureau won’t pursue enforcement actions against buy now, pay later companies that are working to bring some credit card protections to the burgeoning industry.

CFPB Director Rohit Chopra said in a Friday blog post that the buy now, pay later industry has been “responding favorably” to a May interpretive rule requiring companies to provide dispute investigation and resolution, refunds for voided transactions, and regular billing statements that apply to credit cards.

Most buy now, pay later companies, such as Affirm Holdings Inc., Klarna Bank AB, and Block Inc.’s Afterpay unit are working to comply with the ...