Notice2022-01278
Notice and Request for Comment Regarding the CFPB's Inquiry Into Buy-Now-Pay-Later (BNPL) Providers
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 24, 2022
Issuing agencies
Consumer Financial Protection Bureau
Abstract
On December 16, 2021, the Consumer Financial Protection Bureau (Bureau) opened market monitoring orders, inquiring into Buy-Now-Pay- Later (BNPL) products in the United States to gain information about the size, scope, and business practices of the BNPL market. The information will help the Bureau better understand how consumers interact with BNPL providers, and how BNPL business models impact the broader e-commerce and consumer credit marketplaces. The Bureau also issued a press release to accompany these orders. The Bureau invites any interested parties, including consumers, small businesses, consumer advocates, financial institutions, trade associations, investors, state and Federal regulators and Attorneys General, and experts in consumer lending, payments, and marketing to submit comments to inform the agency's inquiry.
Full Text
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<title>Federal Register, Volume 87 Issue 15 (Monday, January 24, 2022)</title>
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[Federal Register Volume 87, Number 15 (Monday, January 24, 2022)]
[Notices]
[Pages 3511-3512]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-01278]
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BUREAU OF CONSUMER FINANCIAL PROTECTION
[Docket No.: CFPB-2022-0002]
Notice and Request for Comment Regarding the CFPB's Inquiry Into
Buy-Now-Pay-Later (BNPL) Providers
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Notice; request for comment.
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SUMMARY: On December 16, 2021, the Consumer Financial Protection Bureau
(Bureau) opened market monitoring orders, inquiring into Buy-Now-Pay-
Later (BNPL) products in the United States to gain information about
the size, scope, and business practices of the BNPL market. The
information will help the Bureau better understand how consumers
interact with BNPL providers, and how BNPL business models impact the
broader e-commerce and consumer credit marketplaces. The Bureau also
issued a press release to accompany these orders. The Bureau invites
any interested parties, including consumers, small businesses, consumer
advocates, financial institutions, trade associations, investors, state
and Federal regulators and Attorneys General, and experts in consumer
lending, payments, and marketing to submit comments to inform the
agency's inquiry.
DATES: Comments must be received on or before March 25, 2022.
ADDRESSES: You may submit comments, identified by Docket No.: CFPB-
2022-0002, by any of the following methods:
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Follow the instructions for submitting comments.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#094b4759454067787c607b70496a6f796b276e667f"><span class="__cf_email__" data-cfemail="30727e607c795e414559424970535640521e575f46">[email protected]</span></a>. Include Docket No.: CFPB-
2022-0002 in the subject line of the message.
<bullet> Mail/Hand Delivery/Courier: Comment Intake--Statement into
BNPL Providers, Bureau of Consumer Financial Protection, 1700 G Street
NW, Washington, DC 20552. Please note that due to circumstances
associated with the COVID-19 pandemic, the Bureau discourages the
submission of comments by hand delivery, mail, or courier.
Instructions: The Bureau encourages the early submission of
comments. All submissions should include document title and docket
number. Because paper mail in the Washington, DC area and at the Bureau
is subject to delay, commenters are encouraged to submit comments
electronically. In general, all comments received will be posted
without change to <a href="https://www.regulations.gov">https://www.regulations.gov</a>. In addition, once the
Bureau's headquarters reopens, comments will be available for public
inspection and copying at 1700 G Street NW, Washington, DC 20552, on
official business days between the hours of 10 a.m. and 5 p.m. Eastern
Time. At that time, you can make an appointment to inspect the
documents by telephoning 202-435-7275.
All comments, including attachments and other supporting materials,
will become part of the public record and subject to public disclosure.
Proprietary information or sensitive personal information, such as
account numbers or Social Security numbers, or names of other
individuals, should not be included. Comments will not be edited to
remove any identifying or contact information. This docket is not for
submitting other information to the Bureau, such as consumer complaints
on a particular company. If you would like to submit a complaint,
please visit <a href="http://consumerfinance.gov">consumerfinance.gov</a> (<a href="https://www.consumerfinance.gov/complaint/">https://www.consumerfinance.gov/complaint/</a>).
FOR FURTHER INFORMATION CONTACT: Laura Udis, Program Manager, Small
Dollar, Marketplace, and Installment Lending, 202-435-9158. If you
require this document in an alternative electronic format, please
contact <a href="/cdn-cgi/l/email-protection#d6959086948997b5b5b3a5a5bfb4bfbabfa2af96b5b0a6b4f8b1b9a0"><span class="__cf_email__" data-cfemail="f5b6b3a5b7aab496969086869c979c999c818cb596938597db929a83">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
In the December 16, 2021, market monitoring orders and accompanying
press release, the Bureau required five providers of Buy-Now-Pay-Later
(BNPL) products in the United States to provide information about their
size, scope, and business practices.\1\ The Bureau listed six areas of
specific interest:
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\1\ The press release and sample order can be found at <a href="https://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-opens-inquiry-into-buy-now-pay-later-credit/">https://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-opens-inquiry-into-buy-now-pay-later-credit/</a>.
<bullet> Business Model and Transaction Metrics
<bullet> Loan Performance Metrics
<bullet> Consumer Protections
<bullet> User Contacts and Demographics
<bullet> Data Harvesting
<bullet> Data Monetization
The Bureau invites any interested parties to submit comments to
inform the agency's inquiry.
[[Page 3512]]
II. Public Comment
The Bureau encourages comments about BNPL products. For example:
What is the consumer experience with BNPL products? What are the
benefits and risks to consumers from BNPL products? What is the
merchant experience with BNPL products? What perspectives do regulators
and Attorneys General have with respect to BNPL products? Are there
ways in which the BNPL market can be improved?
The Bureau is opening a docket on <a href="http://Regulations.gov">Regulations.gov</a> and invites any
interested parties to submit relevant comments to inform the agency's
inquiry.
Rohit Chopra,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2022-01278 Filed 1-21-22; 8:45 am]
BILLING CODE 4810-AM-P
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