S3561119th CongressWALLET

Buy Now, Pay Later Protection Act of 2025

Sponsored By: Senator Sen. Reed, Jack [D-RI]

Introduced

Summary

Brings buy now, pay later loans under the same federal consumer-credit rules that apply to credit cards. The bill amends the Truth in Lending Act and the Consumer Financial Protection Act to define BNPL, extend key disclosure and billing protections, and place BNPL lenders under CFPB supervision.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Protections for buy now, pay later

If enacted, this bill would define a buy now, pay later loan. It would be a closed-end retail loan repaid in no more than four interest-free installments and that charges no finance fee. If enacted, these loans would be covered by the Truth in Lending Act so consumers would get the same disclosure, billing dispute, and liability protections that apply to credit cards. The Consumer Financial Protection Bureau would have one year after enactment to write rules to implement these changes. Those coverage changes would take effect when the law is enacted.

Federal oversight for buy now pay later

If enacted, companies that offer buy now, pay later loans would be supervised by the Consumer Financial Protection Bureau. The Bureau could examine those firms and enforce consumer finance rules against them. This change would take effect when the law is enacted.

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Sponsors & CoSponsors

Sponsor

Sen. Reed, Jack [D-RI]

RI • D

Cosponsors

  • Chris Van Hollen

    MD • D

    Sponsored 12/18/2025

  • Richard Blumenthal

    CT • D

    Sponsored 12/18/2025

  • Kirsten Gillibrand

    NY • D

    Sponsored 12/18/2025

  • Sen. Warren, Elizabeth [D-MA]

    MA • D

    Sponsored 2/9/2026

Roll Call Votes

No roll call votes available for this bill.

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