The Consumer Financial Protection Bureau will classify “buy now, pay later” apps the same way it treats credit cards, a move meant to afford consumers more protections, the agency announced Wednesday.
Buy now, pay later, or BNPL, apps allow users to make purchases in interest-free installments. But consumers often don’t know whether lenders will help them when they need to return an item or cancel a booking, the CFPB said. As a remedy, the regulator will soon require lenders to investigate disputes and cover refunds.
