Buy now, pay later companies must adhere to credit card standards, consumer agency says
The Consumer Financial Protection Bureau says in a new rule that buy now, pay later lenders are basically credit card providers and must provide the same protections and rights that apply to those lenders
By Cora Lewis
Published - May 22, 2024, 06:49 PM ET
Last Updated - May 22, 2024, 06:49 PM EDT
NEW YORK (AP) — Buy now, pay later companies must provide consumers with the same legal rights and protections as credit card lenders do, the Consumer Financial Protection Bureau said Wednesday in a new rule.
That includes the right to demand a refund and to dispute transactions. The agency began an inquiry into the short-term lending industry two years ago, and it issued the rule in response to ongoing consumer complaints, it said.
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