September 15, 2022

Brown Applauds CFPB Action on Buy Now, Pay Later Products

Today, Sen. Sherrod Brown (D-OH), Chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, released the following statement after the Consumer Financial Protection Bureau announced that it will ensure consumer financial protections apply to newer financial products.

“Financial products that are well-designed, transparent, and regulated can help workers pay off an unexpected car repair, or help with the grocery bill, or cover a medical expense. But too often these new products aren’t well designed, they’re rarely transparent about fees and risks, and they’re not well-regulated – leading to more and more debt that workers can’t repay,” said Sen. Brown. “Without protections, consumers are stuck with a landmine when they needed a lifeline. I am glad to see Director Chopra using the CFPB’s authorities to ensure consumers have access to safe financial products that work for them.” 

Today’s announcement follows a Banking and Housing hearing earlier this week examining newer consumer financial products like Buy Now, Pay Later, as well as a December 2021 letter from several Senate Democrats urging CFPB Director Chopra to strengthen oversight over BNPL products.