November 19, 2025

Warren, Blumenthal, Booker, Duckworth, Hirono Press Buy Now, Pay Later Companies for Data on Rapidly Growing Industry as Trump's Attack on CFPB Leaves Consumers Vulnerable

“Consumers are depending on BNPL to pay for essentials such as groceries, healthcare, and to make payments on other forms of consumer debt, further demonstrating how intertwined BNPL loans have become in consumers’ financial lives.”

“This could suggest that consumers are turning to BNPL when their other sources of credit are less available—and may be taking on debt they cannot afford.”

Washington, D.C. – U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, and Senators Richard Blumenthal (D-CT), Cory Booker (D-NJ), Tammy Duckworth (D-IL), and Mazie Hirono (D-HI) sent letters to seven major companies offering Buy Now Pay Later (BNPL) services requesting data to understand the risks and economic impact of BNPL products, as consumers’ use of these opaque products rapidly grows. The Senators’ letter comes as the Trump Administration undermines the Consumer Financial Protection Bureau’s (CFPB) ability to monitor the BNPL industry.

“BNPL loans are becoming increasingly common with consumers, with up to half of Americans having used a BNPL loan,” wrote the Democratic Senators.

The Senators continued: “A consumer with a BNPL loan had, on average, $871 more in credit card debt in the month of origination than a consumer of the same age and credit score category who did not originate a BNPL loan that month. This could suggest that consumers are turning to BNPL when their other sources of credit are less available—and may be taking on debt they cannot afford.”

They raised concerns about the lack of regulation of BNPL products under the Trump Administration: “Notably, BNPL providers had previously been regulated by the CFPB pursuant to an interpretative rule that classified them as ‘credit card issuers’ and ‘creditors’ and classified BNPL loans largely as ‘credit cards….’ However, under the Trump Administration, the CFPB announced it would no longer prioritize enforcement actions against BNPL providers and withdrew the interpretative rule authorizing CFPB regulation under the Truth in Lending Act.”

The Senators continued: “We are also aware of recent reporting that FICO is releasing two new versions of its credit score that will encompass BNPL data. The new scores will purportedly ‘aggregat(e) separate BNPL loans together when calculating certain in-model variables.’ However, multiple major BNPL players are not providing their customers’ data due to concerns about FICO’s current methodology and the effects on their customers’ credit scores.”

The Senators concluded by calling for the companies to provide data on their BNPL products, their users, and their role in the broader economy no later than December 9, 2025.

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