• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar

Alston & Bird Consumer Finance ABstract

  • Home
  • Services
  • Contacts

Update Regarding the CFPB’s Buy Now, Pay Later Orders

January 7, 2022 By Brian Johnson

In a prior post, we reported that the language used in orders recently issued by the CFPB to leading Buy Now, Pay Later (“BNPL”) providers suggested that the CFPB intends to use the information it collects to build enforcement cases rather than monitor market developments. We also reported that if this is the case, it is a departure from historic precedent and can be considered an end-run around the procedural safeguards established by Congress in Section 1052 of the Dodd-Frank Act to ensure that due process is afforded to financial institutions that become the target of CFPB enforcement investigations.

The CFPB’s intentions were apparently confirmed in a January 5 article in Axios about the BNPL orders, which quotes the CFPB’s small dollar, marketplace and installment lending program manager as saying:

It is certainly possible that we could as a result of the data collection take enforcement action.

Assuming this quote is accurate, recipients of CFPB 1022(c)(4) market monitoring orders should be well aware that any information provided to the agency may be used for enforcement purposes.

Filed Under: Consumer Financial Protection Bureau (CFPB), Dodd-Frank Act, Fintech Tagged With: #BNPL, #CFPA, #CFPB

About Brian Johnson

Brian Johnson is a partner in Alston & Bird’s Financial Services & Products Group and the Consumer Financial Services Team.

[Read Bio]

Primary Sidebar

RECEIVE EMAIL NOTIFICATIONS WHEN NEW POSTS ARE ADDED.

A confirmation email has been sent to the email address provided.


Tags

#California #CCPA #CFPA #CFPB #COVID=19 #debtcollection #evaluations #FCRA #FDCPA #GSEs #HECM #Massachusetts #mortgageservicing #NYDFS #Part419 #Privacy #QMPatch #SupervisoryHighlights #validwhenmade Ability to Repay abusive ATR/QM CARES Act Case law Covid-19 Credit Reporting CSBS Cybersecurity data breach Debt Collection DOJ Eleventh Circuit FACTA Forbearance Foreclosure HUD Mortgage Servicing passive investors QM QM Patch Regulation F SCRA Servicing student loan servicing UDAAP

Secondary Sidebar

Categories

Recent Posts

  • Client Advisory: One Person’s Junk Fee Is Another’s Treasure
  • Utah to regulate smaller commercial non-real estate secured financings
  • PAVE Task Force Issues Action Plan to Address Appraisal Bias
  • CFPB Issues Bulletin About Auto Repossession, Congressional Republicans Respond
  • New York Amends Contact Requirements for Certain Delinquent Borrowers
Copyright © 2022 · Alston & Bird · All Rights Reserved. Privacy.