States Seek Info From BNPL Firms After Federal Rule Reversal

Connecticut led a seven-state coalition requesting information from BNPL providers on their pricing, fees, disclosures and underwriting practices, voicing concerns the products may put consumers at financial risk.

• Letters sent to Affirm, Afterpay, Klarna, PayPal, Sezzle, Zip
• States examining whether BNPL firms comply with consumer-protection laws
• Inquiry asks how lenders assess repayment capacity
• Requests cover billing practices, late fees, handling of disputed charges
• Action follows CFPB reversal under Trump Administration of a 2024 rule applying TILA protections to BNPL

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Georgi Azar in New York ...