WASHINGTON, D.C. – U.S. Senator Tammy Duckworth (D-IL) joined U.S. Senators Elizabeth Warren (D-MA), Richard Blumenthal (D-CT), Cory Booker (D-NJ) and Mazie Hirono (D-HI) in pushing seven major companies offering “Buy Now, Pay Later” (BNPL) services to provide critical data needed to understand the risks and economic impact of BNPL products, as consumers’ use of these opaque products rapidly grows. The Senators’ letter comes as the Trump Administration undermines the Consumer Financial Protection Bureau’s (CFPB) ability to monitor the BNPL industry.
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“BNPL loans are becoming increasingly common with consumers, with up to half of Americans having used a BNPL loan,” wrote the Senators in letters to each of the companies. “A consumer with a BNPL loan had, on average, $871 more in credit card debt in the month of origination than a consumer of the same age and credit score category who did not originate a BNPL loan that month. This could suggest that consumers are turning to BNPL when their other sources of credit are less available—and may be taking on debt they cannot afford.”
They then raised concerns about the lack of regulation of BNPL products under the Trump Administration: “Notably, BNPL providers had previously been regulated by the CFPB pursuant to an interpretative rule that classified them as ‘credit card issuers’ and ‘creditors’ and classified BNPL loans largely as ‘credit cards….’ However, under the Trump Administration, the CFPB announced it would no longer prioritize enforcement actions against BNPL providers and withdrew the interpretative rule authorizing CFPB regulation under the Truth in Lending Act.”
“We are also aware of recent reporting that FICO is releasing two new versions of its credit score that will encompass BNPL data. The new scores will purportedly ‘aggregat(e) separate BNPL loans together when calculating certain in-model variables.’ However, multiple major BNPL players are not providing their customers’ data due to concerns about FICO’s current methodology and the effects on their customers’ credit scores,” continued the Senators.
The Senators concluded by calling for the companies to provide data on their BNPL products, their users and their role in the broader economy no later than December 9, 2025.
Full text of the letters to Affirm, Afterpay, Klarna, Paypal, Sezzle, Zip, and Splitit is available on Senator Duckworth’s website.
