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Buy-now, pay-later returns and disputes are about to get federal oversight

Published

2 years ago

May 22, 2024

Buy-now, pay-later returns and disputes are about to get federal oversight

The Consumer Financial Protection Bureau is requiring buy-now, pay-later lenders to provide the same protections to shoppers as credit card companies do.

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The Consumer Financial Protection Bureau is requiring buy-now, pay-later lenders to provide the same protections to shoppers as credit card companies do.

Nora Carol/Getty Images

Shoppers who use buy now, pay later should have the same protections as credit card users, the federal consumer watchdog said on Wednesday.

That means people who rely on these installment payments should get prompt refunds for returned items, receive regular billing statements and be able to pause payments during investigations into disputed charges.

That’s according to the Consumer Financial Protection Bureau, which says it will begin treating buy-now, pay-later companies — such as Klarna and Affirm — as credit card providers under the Truth in Lending Act, starting in two months.

Have you used buy now, pay later? Tell us how it went

“The CFPB wants to make sure that these new competitive offerings are not gaining an advantage by sidestepping the long-standing rights and responsibilities enshrined under the law,” the agency’s director, Rohit Chopra, told reporters. “Given the growth in outstanding consumer credit and the rise in new forms of credit, we’re going to continue to carefully monitor these markets and take action to ensure that consumers are being treated fairly.”

This change does not affect how buy-now, pay-later lenders interact with credit bureaus, which the lenders are not required to report to. That has been a central distinction of this industry, allowing it to serve people with limited access to credit but also to grow without much disclosure about its scale or riskiness.

One in 5 households has used buy now, pay later, or BNPL, services, the Federal Reserve Bank of New York estimates. Its study found that shoppers fueling the growth tend to have limited access to credit, lower credit scores or missed credit card payments.

More Americans are falling behind on credit card bills

Where a credit card company will charge interest on purchases not paid in full at the end of the billing cycle, BNPL firms often let people split purchases into four or six installments interest free — without a credit check.

Struggles with refunds through BNPL

Returns and billing disputes have been particular pain points for shoppers using the installment plans.

Sharing their experiences with NPR, many describe having to continue paying off a purchase long after the item is returned for a full refund — meaning the BNPL provider issues the refund only after collecting all the installments, rather than canceling the remaining ones.

Occasionally, BNPL companies might refuse to deal directly with errant merchants, continuing to charge installments for items that never arrived or arrived damaged.

How do you use buy now, pay later? It likely depends on your credit score

“Consumers have recourse when the merchant gives them the runaround,” Chopra said. “They can dispute a charge with the [BNPL] lender, who is then required to investigate the dispute and in some cases provide a credit to the consumer. Importantly, the consumer does not have to make payments on the [BNPL] loan while the dispute is being investigated.”

Similarly, BNPL companies have to reflect returned items as a credit on the shopper’s loan, Chopra said. Borrowers should also receive detailed disclosures about fees, pricing structures, rights and protections.

The BNPL industry grew rapidly during the COVID-19 pandemic, and the Consumer Financial Protection Bureau has been studying it since 2021. Agency officials say they will now gather comments on whether the bureau needs to clarify its new approach or issue additional guidance or rules.

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Map: Earthquake Shakes Central California

Published

48 minutes ago

March 2, 2026

Press Room

Map: Earthquake Shakes Central California

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown. All times on the map are Pacific time. The New York Times

A minor earthquake with a preliminary magnitude of 3.5 struck in Central California on Monday, according to the United States Geological Survey.

The temblor happened at 7:17 a.m. Pacific time about 6 miles northwest of Pinnacles, Calif., data from the agency shows.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Monday, March 2 at 10:20 a.m. Eastern. Aftershocks data is as of Monday, March 2 at 11:18 a.m. Eastern.

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US says Kuwait accidentally shot down 3 American jets

Published

3 hours ago

March 2, 2026

Press Room

US says Kuwait accidentally shot down 3 American jets

The U.S. and Israel have been conducting strikes against targets in Iran since Saturday morning, with the aim of toppling Tehran’s clerical regime. Iran has fired back, with retaliatory assaults featuring missiles and drones targeting several Gulf countries and American bases in the Middle East.

“All six aircrew ejected safely, have been safely recovered, and are in stable condition. Kuwait has acknowledged this incident, and we are grateful for the efforts of the Kuwaiti defense forces and their support in this ongoing operation,” Central Command said.

“The cause of the incident is under investigation. Additional information will be released as it becomes available,” it added.

In a separate statement later Monday, Central Command said that American forces had been killed during combat since the strikes began.

“As of 7:30 am ET, March 2, four U.S. service members have been killed in action. The fourth service member, who was seriously wounded during Iran’s initial attacks, eventually succumbed to their injuries,” it said.

Major combat operations continue and our response effort is ongoing. The identities of the fallen are being withheld until 24 hours after next of kin notification,” Central Command added.

This story has been updated.

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Satellite images provide view inside Iran at war

Published

16 hours ago

March 1, 2026

Press Room

Satellite images provide view inside Iran at war

Smoke rises over Konarak naval base in southern Iran on Sunday. The base was one of hundreds of targets of U.S. and Israeli forces throughout the country.

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Commercial satellite images are providing a unique look at the extent of damage being done to Iran’s military facilities across the country.

The U.S. and Israeli military campaign opened with a daytime attack that struck Iranian leadership in central Tehran. Smoke was still visible rising from Ayatollah Ali Khamenei’s compound following the attack that killed the supreme leader.

An image by the company Airbus taken on Saturday shows the aftermath of an Israeli strike on Iran’s Leadership House in central Tehran. Iran’s Supreme Leader Ayatollah Ali Khamenei was killed in the opening wave of attacks.

Pléiades Neo (c) Airbus DS 2026

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Pléiades Neo (c) Airbus DS 2026

Israel and the U.S. have gone on to strike targets across the country. Reports on social media indicate that there have been numerous military bases and compounds attacked all over Iran, and Iran has responded with attacks throughout the Middle East.

U.S. forces have also been striking at Iran’s navy. In a post on his social media platform, President Trump said that he had been briefed that U.S. forces had sunk nine Iranian naval vessels. U.S. Central Command did not immediately confirm that number but it did say it had struck an Iranian warship in port.

An image captured on February 28 shows a ship burning at Iran's naval base at Konarak.

An image captured on Saturday shows a ship burning at Iran’s naval base at Konarak.

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Numerous satellite images show burning vessels at Konarak naval base in southern Iran. Images also show damage to a nearby airbase where hardened hangers were struck by precision munitions.

Hardened aircraft shelters at Konarak airbase were struck with precision munitions.

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And there was extensive damage at a drone base in the same area. Iran has launched numerous drones and missiles toward Israel and U.S. military installations in Bahrain, Kuwait and Qatar. Many drones have been intercepted but videos on social media show that some have evaded air defenses and caused damage in nearby Gulf countries. In Dubai, debris from an Iranian drone damaged the iconic Burj Al Arab, according to a statement from Dubai’s government.

Buildings at an Iranian drone base at Konarak were destroyed in the strikes.

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Iran’s most powerful weapons are its long-range missiles. The Iranian Revolutionary Guards have hidden the missiles deep inside mountain tunnels. Images taken Sunday in the mountains of northern Iran indicate that some of those tunnels were hit in a wave of strikes.

Following Khamenei’s death, Iran declared 40 days of mourning. Satellite images showed mourners gathering in Tehran’s Enghelab square on Sunday.

Iranian Foreign Ministry Spokesperson Esmail Baghaei told NPR on Sunday that Iran will continue to fight “foreign aggression, foreign domination.”

A White House official told NPR that Trump plans to talk to Iran’s interim leadership “eventually,” but that for now, U.S. operations continue in the region “unabated.”

A large crowd of mourners fill Enghelab Square in Tehran on Sunday, following the death of Iran’s Supreme Leader Ayatollah Ali Khamenei, who was killed in an Israeli airstrike.

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