The CFPB announced plans for a rulemaking to define larger participants in the personal loan/Buy Now, Pay Later (BNPL) market. America’s Credit Unions requested additional regulation of BNPL providers in a letter sent to the bureau in August, and its legacy organizations requested such a rulemaking dating back to 2022.

America’s Credit Unions noted the BNPL market is characterized by an uneven playing field where some providers craft products to specifically avoid consumer protection regulations. Defining “larger participants” in the nonbank personal loan market would subject those participants to CFPB supervisory authority.

The CFPB responded to a petition requesting action Wednesday that “we intend to develop a proposed rule as suggested,” while clarifying it is already supervising certain nonbank participants in this market.

The bureau noted “concerns about the existence of an unlevel playing field in the market of personal loans have merit.”