CFPB’s ‘Buy Now, Pay Later’ Rule Sparks Conflicting Reactions

Consumer advocates urged the Consumer Financial Protection Bureau to toughen up rules for buy now, pay later companies that went into effect this week, including bringing the biggest providers such as Affirm Holdings Inc. under direct supervision.

The CFPB in May issued an interpretive rule applying credit card protections such as dispute resolution procedures, refunds for voided purchases, and regular billing statements to buy now, pay later products.

Industry representatives argued the interpretive rule, which took effect July 30, wasn’t appropriate for buy now, pay later. Credit cards are revolving, open-ended loans, while buy now, pay later products have a ...