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119-hr-6891119th CongressWALLET

Buy Now, Pay Later Protection Act of 2025

Sponsored By: Representative Ross, Deborah K. [D-NC-2]

Introduced

Summary

Would bring buy now, pay later (BNPL) loans under the Truth in Lending Act and federal supervision. The bill would define BNPL, extend TILA consumer protections and defenses to BNPL borrowers, and require the Bureau of Consumer Financial Protection to issue implementing rules within 1 year.

Show full summary
  • Households using BNPL would gain the same TILA disclosure rights, legal defenses, and remedies that apply to other consumer credit products. This changes how disputes and borrower protections are handled.
  • BNPL companies would be subject to federal oversight by the Bureau of Consumer Financial Protection. That makes BNPL lenders follow TILA cross-references and face new compliance and supervision obligations.
  • The bill would define a BNPL loan as a closed-end consumer loan repaid in not more than four interest-free installments and that imposes no finance charge. The Bureau would be required to write implementing rules within 1 year to align regulations and enforcement.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Federal oversight for BNPL companies

If enacted, the Consumer Financial Protection Bureau would be able to supervise persons who offer or provide buy now, pay later loans as defined in the Truth in Lending Act. BNPL providers could face CFPB examinations and supervisory requirements. The goal of the oversight would be stronger consumer protections for people who use these loans.

Buy now, pay later protections

If enacted, this bill would add a definition for a buy now, pay later loan. It would treat a BNPL loan as a closed-end retail loan repaid in not more than four interest-free installments that does not impose a finance charge. You would get the same Truth in Lending Act disclosures, defenses, and account protections that credit card users get. These changes would take effect upon enactment.

CFPB must write BNPL rules

If enacted, the Consumer Financial Protection Bureau would have to issue rules to carry out the Truth in Lending Act changes for buy now, pay later loans. The Bureau must finish those implementing rules not later than one year after this section's date. The rules would explain how the new TILA protections apply to BNPL lenders and borrowers.

Sponsors & CoSponsors

Sponsor

Ross, Deborah K. [D-NC-2]

NC • D

Cosponsors

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 1/13/2026

  • Rep. Tlaib, Rashida [D-MI-12]

    MI • D

    Sponsored 1/30/2026

  • Rep. Foushee, Valerie P. [D-NC-4]

    NC • D

    Sponsored 2/3/2026

  • Rep. Lynch, Stephen F. [D-MA-8]

    MA • D

    Sponsored 2/9/2026

  • Rep. Sykes, Emilia Strong [D-OH-13]

    OH • D

    Sponsored 4/27/2026

  • Rep. Williams, Nikema [D-GA-5]

    GA • D

    Sponsored 6/15/2026

Roll Call Votes

No roll call votes available for this bill.

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