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He gave a nod to the CFPB for its proposal to bring big
tech payments activities under its regulatory regime.
"These companies need to step up, and they apparently Unlock Your
need rules to make them do it," Sen. Brown said.

Brown and others on the banking panel also want the Growth Potential
CFPB to take action to oversee the burgeoning buy
now pay later (BNPL) market.
According to Adobe Analytics, during the 2023 year- With a BCP Loan
end holiday shopping season, (Nov. 1 through Dec. 31)
BNPL usage for online purchases hit an all-time high
of $16.6 billion—14 percent or about $2.1 billion more in
BNPL purchases than during the 2022 holiday season.

In a letter to CFPB Director Rohit Chopra, Sens. Brown
and John Fetterman, D-Pa., urged the bureau to imple-
ment new protections around BNPL. The two senators
urged the CFPB to use the "full range of your author-
ity" to protect consumers from the potential perils of
BNPL.

"While BNPL might provide some consumers with
helpful flexibility, it also presents new risks that the
CFPB should continue to monitor and guard against,
especially in light of the significant increase in the use
of BNPL during the holiday season," the senators stat-
ed. "The CFPB must ensure that BNPL does not become
a method to take advantage of struggling consumers."

The CFPB said its research suggests about one in 10
BNPL borrowers have paid late fees to BNPL lenders.

In December 2023, the Office of the Comptroller of the
Currency, which regulates many of the nation's largest
banks, put those banks on notice that it, too, was con-
cerned about the proliferation of BNPL loans and the
implications for consumer debt.

The OCC sent bankers "guidance" in the form of a bul-
letin detailing necessary steps for managing risks as-
sociated with BNPL products. The OCC said it was es-
pecially concerned about loans advertised as interest-
free provided the amount is paid in full within four or
fewer installments. BOCA

The agency said it was prompted to issue guidance CAPITAL
after it saw what the CFPB is doing. (Both the OCC PARTNERS
and CFPB are independent agencies within the U.S.
Treasury Department.) "[T]he guidance confirms our
expectation that OCC-supervised institutions offer- Get a loan from $100,000 to
ing these products do so in a responsible manner," the
regulator stated. $5,000,000 for your ISO today

Patti Murphy, self-described payments maven of the fourth estate,
is senior editor at the Green Sheet. She also co-hosts the Merchant
Sales Podcast, and is president of ProScribes Ink, www.proscribes. Call Now: 844-531-4957
net.
bocacapitalpartners.com

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