Bill > S692

This bill aims to protect consumers engaging with "buy now, pay later" (BNPL) lenders in Massachusetts. The key provisions are: 1) BNPL providers that offer payment plans for online purchases in Massachusetts will be considered small loan businesses and subject to state regulations on small loans and third-party loan servicing; 2) The state banking regulator will investigate major BNPL companies to determine if they have operated as unlicensed small loan businesses and require them to obtain the necessary licenses; and 3) The banking regulator will promulgate regulations to ensure BNPL providers must hold a small loan business license to continue operations in the state. Additionally, the bill requires BNPL providers to disclose key information to consumers, such as the full loan cost, maximum late fees, and implications for credit reports.

Business and Industry

https://malegislature.gov/Bills/193/S692