CFPB drops enforcement of buy now, pay later rule

The Consumer Financial Protection Bureau announced that it will not prioritize enforcement actions taken on the basis of the Truth in Lending; Use of Digital User Accounts to Access Buy Now, Pay Later Loans, 89 Fed. Reg. 47,068. The Bureau will instead keep its enforcement and supervision resources focused on pressing threats to consumers, particularly servicemen and veterans. The Bureau said it is taking this step “in the interest of focusing resources on supporting hard-working American taxpayers, servicemen, veterans, and small businesses. The Bureau is further contemplating taking appropriate action to rescind Buy Now, Pay Later.” Buy now, pay later companies include Affirm (AFRM) and Klarna (KLAR).