Buy Now Pay Later Consumer Protection Act of 2026
Officially: “Buy Now Pay Later Consumer Protection Act of 2026” Read the full text
What it does
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1Short title
This section would give the Act the short title 'Buy Now Pay Later Consumer Protection Act of 2026.'
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1. Short title This Act may be cited as the Buy Now Pay Later Consumer Protection Act of 2026 .
2Buy now, pay later loans included in definition of credit card
This section would amend section 103 of the Truth in Lending Act (15 U.S.C. 1602) to add buy now, pay later loans and their issuers to that law's coverage. It would expand the definition of 'credit card' to include a buy now, pay later loan, and it would expand the definition of 'credit card issuer' to include a person who issues a buy now, pay later loan. It would add a new definition of 'buy now, pay later loan,' meaning a closed-end consumer loan for goods or services that is repaid in no more than 4 interest-free installments, does not impose a finance charge, and is given to a consumer at the time that consumer seeks to buy goods or services, to finance that purchase. The section would require the Bureau of Consumer Financial Protection to issue rules carrying out these changes no later than 180 days after the Act becomes law. Those rules would have to follow the Bureau's interpretive rule titled 'Truth in Lending (Regulation Z); Use of Digital User Accounts To Access Buy Now, Pay Later Loans,' published in the Federal Register on May 31, 2024 (89 Fed. Reg. 47068), and would have to apply subpart B of part 1026 of title 12 of the Code of Federal Regulations and part 1026.60 of title 12 of the Code of Federal Regulations to issuers of buy now, pay later loans.
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2. Buy now, pay later loans included in definition of credit card (a) In general Section 103 of the Truth in Lending Act ( 15 U.S.C. 1602 ) is amended— (1) in subsection (l), by adding at the end the following: The term includes a buy now, pay later loan. ; (2) in subsection (o), by adding at the end the following: The term includes a person who issues a buy now, pay later loan. ; and (3) by adding at the end the following: (ff) Buy now, pay later loan The term buy now, pay later loan means a closed-end consumer loan for goods or services that— (1) is repaid in not more than 4 interest-free installments; (2) does not impose a finance charge; and (3) is provided to a consumer, at the time such consumer seeks to purchase goods or services, to finance the purchase of such goods or services. . (b) Rulemaking (1) In general Not later than 180 days after the date of the enactment of this Act, the Bureau of Consumer Financial Protection shall issue rules to carry out the amendments made by this section. (2) Requirements The rules issued under paragraph (1) shall— (A) be in accordance with the interpretive rule entitled Truth in Lending (Regulation Z); Use of Digital User Accounts To Access Buy Now, Pay Later Loans published by the Bureau of Consumer Financial Protection in the Federal Register on May 31, 2024 (89 Fed. Reg. 47068); and (B) apply subpart B of part 1026 of title 12, Code of Federal Regulations, and part 1026.60 of title 12, Code of Federal Regulations, to issuers of buy now, pay later loans (as defined in subsection (ff) of section 103 of the Truth in Lending Act ( 15 U.S.C. 1602 ), as added by this section).
Where it is
In the House.