The National Law Review identifies that the CFPB is using its market monitoring authority to order five companies offering Buy Now, Pay Later credit to report their data collection and data monetization practices:
“Last month, the CFPB utilized its market monitoring authority to issue a series of orders to five companies offering “buy now, pay later” credit. Buy now, pay later, or BNPL, is a deferred payment option that allows consumers to split a purchase into smaller installments, typically four or less, often with a down payment of 25 percent due at checkout.
As we detail in our sister blog here, the CFPB is seeking information on the risks and benefits of these “fast-growing” products over concerns about, among other things, data harvesting and data monetization in a consumer credit market already quickly changing with technology. The CFPB provided to the public an example of the order issued to these companies. The order has 20 requests for information and data on several topics. Two key areas are discussed below.”
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group