Earlier this year, the CFPB published its interpretive rule declaring that pay-in-four BNPL lenders should be treated in the same way as credit cards. This means that providers must give consumers some key legal protections and rights that apply to conventional credit cards. These include a right to dispute charges and demand a refund from the lender after returning a product purchased with a buy now, pay later loan. FTA CEO Penny Lee says: "Unfortunately, the CFPB’s rushed interpretive rule falls short on multiple counts, oversteps legal bounds, and risks creating confusion for consumers. The CFPB is seeking to fundamentally change the regulatory treatment of pay-in-four BNPL products without adhering to required rulemaking procedures, in excess of its statutory authority, and in an unreasonable manner. "We believe the CFPB’s attempt to impose regulations designed for credit cards on the pay-in-four products offered by many of our members shows an underlying misunderstanding of BNPL." Lee insists that the industry welcomes regulation that "fits the unique characteristics" of the BNPL sector and is committed to working with the CFPB on this. BNPL giant Klarna has called the CFPB rule "baffling" although another major player, Affirm, has said it is "encouraged" by it.