The agency said it will redirect enforcement and supervision resources toward what it called "pressing threats to consumers, particularly servicemen and veterans."
The bureau described the shift as part of an effort focused on "supporting hard-working American taxpayers, servicemen, veterans, and small businesses."
The rule at issue was published in the Federal Register on May 31, 2024. It treated short-term installment loans offered by buy now, pay later providers similarly to traditional credit cards, requiring standard credit disclosures, dispute investigations, and refunds for returned merchandise.
Under the new posture, the CFPB will not pursue violations of the regulation's disclosure and dispute resolution requirements, according to the announcement. The agency did not identify which specific threats would receive priority attention and did not provide a timeline for potential rescission.
The buy now, pay later market includes providers such as Klarna, Affirm, and Afterpay. The 2024 rule was designed to address what the bureau had characterized as a gap in consumer protections, on the view that these products function as credit products but had largely operated outside traditional lending regulations.
The CFPB did not announce any formal rulemaking proceeding to rescind the regulation.