This bill would change two federal consumer protection laws to cover certain "buy now, pay later" (BNPL) loans. It defines a BNPL loan as a closed-end consumer loan for a retail purchase that is repaid in not more than four interest-free installments and does not charge a finance charge. The bill amends the Truth in Lending Act so parts of that law that now protect credit card customers also apply to these BNPL loan customers. It also requires the Consumer Financial Protection Bureau (CFPB) to issue rules within one year to carry out these changes. Finally, the bill adds lenders that offer these BNPL loans to the list of entities the CFPB can supervise.
If you use a BNPL product that matches the bill's definition, you would get protections under the Truth in Lending Act similar to protections for credit card users. Companies that offer those BNPL loans would become subject to CFPB oversight. The bill only covers BNPL loans that are closed-end, interest-free, repaid in four or fewer installments, and that do not impose a finance charge.
No publicly available information on costs or budgetary effects. The bill does require the CFPB to issue rules within one year and expands the CFPB's authority to supervise BNPL lenders.
No publicly available information.
No publicly available information.