Congressional Resolution Introduced to Undo CFPB’s Buy Now, Pay Later Guidance

Earlier this month, members of the U.S. House of Representatives introduced H.J. Res. 195, a joint resolution providing for congressional disapproval under the Congressional Review Act (CRA) of the recent Consumer Financial Protection Bureau (CFPB) guidance on buy now, pay later (BNPL) lending. The guidance applied similar protections previously reserved for credit card users to BNPL lending.

“Buy Now, Pay Later is an easily accessible, inexpensive, and flexible form of financing that increases the purchasing power of consumers and boosts sales for retailers,” said Rep. Byron Donalds (R-Fla), in a statement, according to the Tampa Free Press. “The CFPB’s routine of overregulating new and emerging industries for political purposes will only set us back as a country and will continue to drive entrepreneurs offshore to more favorable nations.”

The CFPB’s interpretive rule would require BNPL lenders to investigate disputes, provide billing statements, and refund returned products or canceled services. The Consumer Finance and Fintech Blog noted that the CRA gives lawmakers a period of time to overturn new regulation issued by federal agencies, so the joint resolution could undo the CFPB’s interpretive rule.

The resolution is the most recent development in a persistent battle over how the BNPL industry should be regulated. Industry experts think the resolution is unlikely to pass given the current dynamics in the House and Senate, but lawmakers argue that the CFPB should give the industry more time to prepare for changes and delay implementation of the interpretive rule to October 2025.

“Government must put the American people first and Congress must rein in out-of-control bureaucracy. I am proud to offer this commonsense initiative to comprehensively review and facilitate debate on this impactful new CFPB policy,” Rep. Donalds said.