Lawmaker asks CFPB to probe 'rent now, pay later' as payday-like

A member of Congress has asked the Consumer Financial Protection Bureau to investigate the fast-growing "rent now, pay later" industry, warning that some products charge renters as much as $50 a month and "more closely resemble repackaged payday loans."

Key takeaways

• On July 1, 2026, Rep. Maxwell Frost, D-Fla., sent a letter to CFPB Acting Director Russell Vought urging a probe of rent-financing apps.
• The letter names Flex, Livble, Affirm and Bilt and questions whether the products violate federal consumer-protection laws.
• Frost also asked whether landlords steer tenants toward the plans, which split a monthly rent bill into weekly or biweekly payments for a fee.

What Frost's letter alleges

Rent-financing services let tenants break a rent payment into smaller installments, then charge fees or finance costs to do so. Frost's letter, obtained by The Associated Press, argues consumers may not grasp the true cost, pointing to plans that can add up to $50 a month to split a bill. He asked the Bureau to explain how it is protecting renters and whether property owners are pushing tenants toward the products. Companies including Flex and Livble say breaking rent into multiple payments helps renters manage cash flow.

What it means for renters using rent-financing apps

The request signals continued scrutiny of short-term, fee-based credit products that fall outside traditional payday-loan definitions but carry similar cost concerns. Whether it produces action is uncertain: the CFPB did not immediately comment, and the letter notes that prior congressional requests for investigations have largely gone unanswered under the Bureau's current leadership. For now, the products remain widely available, and disclosure of their full cost varies by provider.