Connecticut Attorney General William Tong joined a coalition of 19 attorneys general to submit comments to the CFPB, urging robust consumer protections for buy-now-pay-later (BNPL) lenders. The coalition expressed concerns that BNPL loans may trap consumers in debt through hidden fees, inadequate disclosures, and improper data monetization practices.
In-house legal teams should review all agreements involving BNPL services, including merchant partner agreements (between BNPL lenders and retailers), consumer loan agreements, and data processing addendums. Key clauses to scrutinize are fee structures and disclosure sections (to ensure clear, conspicuous presentation of all costs, including late fees and installment terms), data sharing and monetization provisions (to verify lawful consent and limitations on selling transaction data), credit assessment and approval processes (to prevent predatory targeting of vulnerable borrowers), and default/collection terms (to avoid debt trap cycles). Required changes may include implementing explicit, separate consent for data sharing, capping late fees, providing clear APR calculations, and incorporating debt counseling resources or opt-out mechanisms for recurring payments.
Entity
Buy-Now-Pay-Later Lenders
Also known as: BNPL Lenders
Industry
Financial ServicesOfficial Press Release
https://portal.ct.gov/ag/press-releases/2022-press-releases/ag-tong-urges-protections-from-buy-now-pay-later-lenders
2022325 cfpb state ag comment letter on bnpl providers 20220
https://portal.ct.gov/-/media/ag/press_releases/2021/2022325-cfpb--state-ag-comment-letter-on-bnpl-providers-20220002-87-fed-reg-3511.pdf?rev=581266f1bd244fe0af7fac119c3f660d&hash=9F43F1613AB9CD38797ABAF7BB658619
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
Connecticut Attorney General William Tong joined a coalition of states and local governments in filing suit against NHTSA over its rule weakening fuel economy standards for new passenger cars and light trucks. The lawsuit alleges the rule violates the agency’s statutory mandate and the Administrative Procedure Act; no penalty or final remedy is reported.
Connecticut Attorney General William Tong joined a multistate coalition suing the EPA over its repeal of greenhouse gas pollution limits for power plants and separately filed a notice of intent to sue over regulation of existing gas plants. The coalition asks the court to overturn the repeal and restore the protections; the release reports no monetary penalty or final order.
$400.0M
Connecticut Attorney General William Tong announced a $400 million settlement with Sandoz Inc. and Fougera Pharmaceuticals Inc. resolving allegations that the generic drug manufacturers conspired to inflate prices, limit competition, and restrain trade. The settlement includes consumer restitution and injunctive reforms; court approval was being sought.
Connecticut Attorney General William Tong joined a coalition of 21 attorneys general in submitting a comment letter opposing a DHS rule that allows certain affirmative asylum applications to be referred to removal proceedings without an asylum officer interview. The coalition argues the rule violates federal law and harms asylum seekers, including unaccompanied children; this was a policy opposition letter, not a privacy enforcement action.
Connecticut and Massachusetts co-led a coalition protest urging FERC to reject the proposed NextEra Energy-Dominion Energy merger. The coalition argued that the merger could increase market power and threaten energy affordability, reliability, and competition; the release does not report a final enforcement decision or penalty.
Connecticut officials warned residents about potential home improvement scams before an approaching nor’easter, including unlicensed contractors, high-pressure sales tactics, and demands for full payment upfront. The release provides consumer guidance on checking contractors and contract requirements; it does not announce an enforcement action or penalty against a named entity.