Bill > S04606

This bill provides comprehensive regulation for buy-now-pay-later (BNPL) lenders in New York State, establishing a new regulatory framework to protect consumers and ensure responsible lending practices. The bill requires all BNPL lenders, except exempt organizations like banks, to obtain a license from the state superintendent of financial services, with detailed requirements for application, capital reserves, and ongoing compliance. Key provisions include mandating clear disclosures about loan terms, requiring lenders to verify a consumer's ability to repay, restricting late fees and charges, and establishing consumer protections such as fair dispute resolution processes and transparent data usage policies. The bill prohibits deceptive practices, limits the reporting of consumer data to credit agencies, and provides mechanisms for consumer refunds. Lenders must maintain accurate records, submit annual reports, and are subject to examination and potential penalties for violations. Importantly, any BNPL loan made by an unlicensed entity would be void, with the lender forfeiting the right to collect principal or charges. The superintendent is granted broad authority to create rules, investigate potential violations, and impose penalties to ensure the integrity of BNPL lending in the state.

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https://www.nysenate.gov/legislation/bills/2025/S4606