Representative Maxwell Frost, the youngest member of Congress, has formally requested that the Consumer Financial Protection Bureau investigate companies offering rent-now-pay-later services, warning that these products may exploit financially vulnerable tenants amid rising housing costs nationwide.
In a letter sent Wednesday to CFPB Acting Director Russell Vought, Frost highlighted firms such as Flex and Livble, which allow renters to split their monthly rent into installments—often with added fees and interest. Flex charges a monthly subscription plus 1 percent of the total rent, while Livble imposes flat fees ranging from $30 to $50. Late payments can trigger additional penalties.
Frost argued that these services, marketed as innovative financial tools, more closely resemble repackaged payday loans. “While many of these companies market their loans as innovative products that can help struggling cash-strapped renters, including by allegedly boosting their credit scores, many of these products more closely resemble repackaged payday loans,” he wrote.
The Florida Democrat pointed to partnerships between lenders and corporate landlords, noting that Livble was purchased by RealPage in 2025 and integrated into its property management platform. RealPage provides software for the real estate industry, raising concerns about renters being funneled into high-cost loans.
Flex has disclosed that its users have a median credit score of 604 and often work multiple jobs. Affirm has also launched a trial of similar services. Frost’s letter warns that these practices could ensnare low-income households in cycles of debt.
State lawmakers have already begun taking action. California Assemblymember Tina McKinnor introduced AB2350 in February, which would cap late fees, limit repayment plans to two installments, and require clear advertising and multilingual disclosures. The bill would also restrict claims of “0 percent APR” unless strict conditions are met.
Housing advocates have voiced support for such measures. “Predatory practices expose working people to potential financial risks from dubious credit reporting,” said Becky Dennison of the Legal Aid Foundation of Los Angeles. However, the East Bay Rental Housing Association argues that restricting flexible payment options could eliminate critical short-term liquidity for renters, potentially forcing them into eviction.
The debate unfolds as Congress pushes a bipartisan housing bill aimed at lowering rents by increasing supply and strengthening tenant protections. President Trump has refused to sign the bill, tying his opposition to the SAVE America Act, a voter ID measure. The CFPB did not immediately respond to a request for comment.
For more on related policy battles, see Trump's dismissal of the housing bill and Democratic warnings about Trump's possible signature.
