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November 8, 2021


.75 hours CLE credit provided
November 8, 2021

BNPL Loan Regulations

James Kim and Jason Cover

The popularity of buy-now-pay-later (BNPL) products has been growing, with the COVID-19 pandemic accelerating its use.  Increasing popularity of BNPL has not gone unnoticed by regulators.  The California DFPI has taken aggressive actions, classifying BNPL as loans covered by the California Financing Law.  The Consumer Financial Protection Bureau recently published a blog post warning consumers about BNPL-related risks, foreshadowing the possibility of increased scrutiny by federal and state regulators.


In this program, our presenters – James Kim and Jason Cover of Ballard Spahr LLP, will take a close look at transactional and regulatory issues raised by BNPL credit. Topics will include:

  • The definition of BNPL and features of the product
  • California DFPI enforcement actions involving BNPL
  • Applicable federal and state laws and regulations



James Kim co-leads Ballard Spahr’s Fintech and Payments Team. He advises Fintechs, banks, investors, and other clients regarding federal and state consumer financial laws and regulations, including Title X of the Dodd-Frank Act (UDAAP), TILA, RESPA, EFTA, and the FCRA. He helps clients navigate examinations and investigations with the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), Federal Reserve Board, Federal Trade Commission (FTC), and various state agencies.


James also assists clients with product development, regulatory due diligence, and matters involving cutting-edge issues, such as financial technology, data aggregation, credit and prepaid cards, and marketplace lending.


Jason M. Cover focuses on federal and state consumer lending and payments laws, including those that apply to installment loans, vehicle-secured loans, lines of credit, unsecured loans, credit cards, point of sale finance and timeshare/vacation finance. He counsels providers of consumer financial services, including banks, licensed lenders and fintech providers, on regulatory compliance matters and government supervisory and enforcement matters.


Jason regularly provides guidance on electronic payments and payment network rules, electronic contracting and mobile commerce, online banking, retail installment sales, preparing for examinations by the Consumer Financial Protection Bureau (CFPB), responding to CFPB supervisory requests (including so-called PARR letters), Article 9 of the Uniform Commercial Code, lease-purchase transactions and consumer protection laws, such as the Telephone Consumer Protection Act (TCPA), Truth in Lending Act (TILA), Fair Credit Reporting Act (FCRA), Equal Credit Opportunity Act (ECOA), Electronic Funds Transfer Act (EFTA), Electronic Signatures in Global and National Commerce Act (E-SIGN), UDAAP statutes prohibiting unfair, deceptive, and abusive acts and practices and the CFPB’s Rule on Payday, Vehicle Title and Certain High-Cost Installment Loans (Payday Rule).


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