CFPB Announcement Regarding Enforcement Actions Related to Buy Now, Pay Later Loans
Summary
The CFPB will not prioritize enforcement actions related to the Truth in Lending Act for Buy Now, Pay Later loans accessed through digital user accounts; this announcement does not change existing compliance requirements.
Why It Matters for Texas Credit Unions
This applies to all credit unions, including those in Texas, as it pertains to federal enforcement actions and compliance with the Truth in Lending Act.
Original Source Material
The CFPB is announcing that it will not prioritize enforcement actions taken on the basis of the Truth in Lending (Regulation Z); Use of Digital User Accounts to Access Buy Now, Pay Later Loans, 89 Fed. Reg. 47,068 (May 31, 2024) (“Buy Now, Pay Later”).