The Consumer Financial Protection Bureau (CFPB) is shifting its focus when it comes to oversight and enforcement in the growing Buy Now, Pay Later (BNPL) market.
In a recent announcement, the bureau stated that it will no longer prioritize enforcement actions based on its previous interpretation that classified BNPL lenders under credit card regulations. This change signals a potential rollback of a rule issued last year that required BNPL providers to offer consumers the same legal protections as traditional credit cards—such as the ability to dispute charges and receive refunds for returned items.
Yesterday, the Consumer Financial Protection Bureau (CFPB or Bureau) announced a significant shift in its enforcement priorities, choosing not to prioritize actions related to Buy Now, Pay Later (BNPL) loans under the Truth in Lending (Regulation Z). This decision aligns with the CFPB’s broader strategic adjustments outlined last month, and discussed here, which emphasize focusing resources on more pressing consumer threats, particularly those affecting servicemen, veterans, and small businesses.
More than 40,000 people will receive a refund as a result of the Federal Trade Commission’s settlement with Cerebral, Inc, an online mental health service provider that allegedly billed consumers despite their requests to cancel their subscriptions.
As economic headwinds continue, collections departments are being asked to do more with less. Amid inflation, rising delinquencies, and shifting consumer behavior, operational resilience is becoming a defining trait of leading collections teams. And leading collections teams know that the key isn’t brute force, it’s adaptability.
As someone who conducts audits and training for collections organizations, I am always on the lookout for ideas that can help improve operations. Usually, these improvements revolve around three areas: technology, procedures, and people. I never imagined that a trip to obtain a Real ID would provide such valuable lessons on running an efficient operation.
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