Buy Now Pay Later Consumer Protection Act of 2026
Sponsored By: Representative Goldman, Daniel S. [D-NY-10]
Introduced
Summary
Treats buy now, pay later loans as credit under the Truth in Lending Act. This bill would add a definition for buy now, pay later loans as closed-end consumer loans repaid in no more than 4 interest-free installments with no finance charge, and it would require the Consumer Financial Protection Bureau to issue implementing rules within 180 days.
Show full summary
- Consumers: Would bring buy now, pay later purchases under Truth in Lending Act rules and disclosures by defining those plans as credit. This changes the legal category for these short installment loans.
- BNPL providers: Would classify buy now, pay later issuers as credit issuers and make them subject to the act's obligations. The bill directs that parts of Regulation Z apply to those issuers.
- Regulators: Would require the Bureau to write rules within 180 days that follow the Bureau's May 31, 2024 interpretive rule and to apply subpart B and 12 C.F.R. 1026.60 to buy now, pay later issuers.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
New rules for buy now, pay later
If enacted, the bill would add a new definition for buy now, pay later (BNPL) loans. It would define BNPL as a closed-end loan repaid in not more than four interest-free installments, with no finance charge, provided at the time of purchase. The bill would require the CFPB to issue rules within 180 days to treat BNPL issuers like other covered lenders. Those rules must follow the CFPB's May 31, 2024 interpretive rule (89 Fed. Reg. 47068) and apply Regulation Z subpart B and 12 CFR 1026.60 to BNPL issuers.
Sponsors & CoSponsors
Sponsor
Goldman, Daniel S. [D-NY-10]
NY • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov