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Jan 24 -- On December 16, 2021, the Consumer Financial Protection Bureau (Bureau) opened market monitoring orders, inquiring into Buy-Now-Pay-Later (BNPL) products in the United States to gain information about the size, scope, and business practices of the BNPL market. The information will help the Bureau better understand how consumers interact with BNPL providers, and how BNPL business models impact the broader e-commerce and consumer credit marketplaces. The Bureau also issued a press release to accompany these orders. The Bureau invites any interested parties, including consumers, small businesses, consumer advocates, financial institutions, trade associations, investors, state and Federal regulators and Attorneys General, and experts in consumer lending, payments, and marketing to submit comments to inform the agency's inquiry. Comments must be received on or before March 25, 2022.
 
In the December 16, 2021, market monitoring orders and accompanying press release, the Bureau required five providers of Buy-Now-Pay-Later (BNPL) products in the United States to provide information about their size, scope, and business practices. The Bureau listed six areas of specific interest:
 
Business Model and Transaction Metrics
Loan Performance Metrics
Consumer Protections
User Contacts and Demographics
Data Harvesting
Data Monetization

The Bureau invites any interested parties to submit comments to inform the agency's inquiry. In particular, the Bureau encourages comments about BNPL products. For example:   
 
What is the consumer experience with BNPL products?  
What are the benefits and risks to consumers from BNPL products?  
What is the merchant experience with BNPL products?  
What perspectives do regulators and Attorneys General have with respect to BNPL products?
Are there ways in which the BNPL market can be improved?
 
FR notice inviting public comment: https://www.federalregister.gov/documents/2022/01/24/2022-01278/notice-and-request-for-comment-regarding-the-cfpbs-inquiry-into-buy-now-pay-later-bnpl-providers
CFPB press release (12/16): Consumer Financial Protection Bureau Opens Inquiry into “Buy Now, Pay Later” Credit https://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-opens-inquiry-into-buy-now-pay-later-credit/

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