On August 19, the CFPB announced it closed its investigation into a fintech company specializing in buy now, pay later (BNPL) financing for firearms and outdoor goods. The CFPB’s chief legal officer stated that the investigation — which began in February 2021 — was “conducted in a biased manner” and “targeted” the company’s facilitation of constitutionally protected activities. Now under new leadership, the CFPB has announced an end to so called “regulation-by-enforcement actions” alleged here to focus on “disfavored industries.”

The letter explained the Bureau’s prior staff had proposed settlement terms that would have required the company to cease leasing firearms, and that these demands were inconsistent with federal firearms regulations.

The Bureau concluded the investigation was not aimed at consumer protection but instead involved “unconstitutional targeting” of lawful business activity. The letter referenced a recent executive order on debanking, previously covered by InfoBytes, pointing to this investigation as emblematic of the type of “targeting” that the executive order prohibited.

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