Buy Now, Pay Later Needs Credit Card-Like Oversight, CFPB Says

Buy now, pay later lenders such as Block Inc.’s Afterpay, Affirm Holdings Inc. and Klarna Bank AB should be treated in some ways like credit-card providers, according to one US financial regulator.

The US Consumer Financial Protection Bureau published a new interpretation of existing laws and regulations on Wednesday to make clear that, like credit-card providers, BNPL firms must investigate disputes, refund returned products or voided services, and provide billing statements.

CFPB Director Rohit Chopra

Photographer: Tierney L. Cross/Bloomberg

That means BNPL companies should be treated more like those that offer credit cards, but not entirely: The CFPB didn’t interpret the existing framework to say that ...