New federal rules to protect shoppers who buy now, pay later

Regulators are playing catch up with the burgeoning "buy now, pay later" business.

Providers of the increasingly popular point-of-sale loans must now offer some of the same protections afforded to credit card users, including the right to dispute charges and demand refunds for returned purchases, the Consumer Financial Protection Bureau announced on Wednesday.

The agency, which protects consumers from financial abuse, is taking the step in response to customer complaints of getting the runaround from pay-later providers when disputing a charge or attempting to return items, CFPB officials said at a press briefing on Tuesday.