Trump’s CFPB removes BNPL enforcement as consumer protections decrease

For the third time under President Donald Trump, the Consumer Financial Protection Bureau has been pulled back from implementing key rules. This time we’ll target purchases now and pay for later services.

In a notice Tuesday, the CFPB said it would not prioritize enforcement of rules established during Joe Biden’s presidency. Fintech lenders had to comply with stricter consumer protections, including standardized disclosure, refund processing and formal dispute investigations.

positive Other BNPL companies also oppose the billing requirements, claiming it will confuse users and add unnecessary friction.

“Requiring BNPL providers to comply with rules designed for open-ended credit cards will result in consumer compliance challenges and confusion,” Affirm wrote in a formal comment letter, urging CFPB to adopt rules that reflect how consumers actually use BNPL products.

The CFPB is looking to go further as it considers withdrawing the rules entirely, citing the “threat threat to consumers,” particularly the need to focus resources on service members, veterans and small businesses.

In October, the Financial Technology Association, representing the leading BNPL players, sued the CFPB, claiming that agents were over-imposed by imposing credit card-like restrictions through interpretation rules rather than formal rules.

This is because the CFPB notifications indicate that new consumer data is putting pressure on the market.

A Bankrate survey released Monday found that almost half of BNPL users face financial problems related to these services. As usage increases, missed payments also increase.

AFFIRM is scheduled to report quarterly results on Thursday. Rival Klarna has filed for it to be public, but it delayed the IPO last month after repeating an announcement that President Trump had cleaned up new tariffs.

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