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The CFPB pattern under the Trump administration would suggest that “rescind” doesn’t mean further regulating or even outlawing BNPL as a business model. Rather, it most likely indicates that it will rescind any other regulations holding BNPL providers back from expanding their services.
As PYMNTS reported in the wake of an October 2024 filing against the CFPB, the Financial Trade Association — which counts FinTech Block and BNPL provider Klarna among its members — contended, “The new rule is arbitrary and capricious because it fails to consider how its new disclosure obligations are ill-fitted for BNPL products, demonstrating that the CFPB fails to consider and address important aspects of how BNPL products function on the ground.”
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