Borrowers of the popular “buy now, pay later” installment loans should find it easier to dispute charges and get refunds under a new rule announced by the federal government last week.
The Consumer Financial Protection Bureau, which has been scrutinizing the alternative loans for more than two years, ruled that “buy now, pay later” lenders were credit card providers and had to offer borrowers some of the same safeguards that conventional credit cards provided.
The bureau issued its findings as an “interpretive” rule, meaning it stated its own interpretation of existing law.
Shoppers can get a quick approval for the loan at checkout, often with a minimal credit check, and pay zero interest.
Some lenders charge late fees for missed payments, while others simply cut off borrowers from new loans until they pay.
Persons:
” Rohit Chopra, they’re
Organizations:
Consumer Financial Protection Bureau