NEW YORK — Rep. Maxwell Frost sent a letter to Consumer Financial Protection Bureau Acting Director Russell Vought, urging an investigation into rent now, pay later companies. Frost called for the agency to hold these companies accountable for potential violations of federal consumer financial protection laws.

Frost asked the CFPB to explain what it is doing to protect renters and to state whether landlords are steering tenants toward rent-financing products.

Rent now, pay later companies allow renters to split their monthly rent into smaller payments over the course of a month. Companies such as Flex and Livble state that breaking rent into multiple payments can help renters manage cash flow. Some payment plans include fees and finance charges. In February, users of these services were reported to pay as much as $50 a month to split their rent.

"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," Frost said.

A February report by Protect Borrowers and Toward Justice argued that some rent now, pay later companies should comply with Truth in Lending Act requirements based on how they structure their products. The rent now, pay later industry disagreed with the findings of the report.

The buy now, pay later company Affirm has conducted limited trials allowing customers to split rent into multiple payments. Bilt allows some renters to pay rent through its credit card and rewards platform. Bilt states it has more than 5 million members, and its customers have historically used the service to earn rewards points on rent payments.

The CFPB has curtailed its work under the second Trump administration. Under Vought, the agency has rolled back regulations and guidance, dropped enforcement actions, and moved to rescind previous agency activity.