After a request for data from Buy Now, Pay Later (BNPL) providers Klarna, Affirm, Afterpay, PayPal and Zip earlier this year, the CFPB is calling for BNPL data to be furnished to the credit bureaus, noting that the “lack of furnishing could have downstream effects on consumers and the credit reporting system.”
The CFPB argues that both positive and negative data should be reported to the credit bureaus, and that BNPL providers reporting consumer data is consistent with the Bureau’s current focus on credit inclusion. Regardless, a new trend like this will have big implications for BNPL recovery and collections.
Is it a double-edged sword for consumers?
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