Bill > A06757

This bill provides comprehensive regulation for buy-now-pay-later (BNPL) lenders in New York State, establishing a new framework to protect consumers and ensure responsible lending practices. The bill requires all BNPL lenders, with some exceptions for traditional banking institutions, to obtain a license from the state superintendent of banking, undergo rigorous application and examination processes, and adhere to strict consumer protection standards. Key provisions include prohibiting interest or late fees on BNPL loans, mandating clear disclosures about loan terms, requiring lenders to assess a consumer's ability to repay before extending credit, and restricting credit reporting for these loans. The bill also establishes robust consumer protections, such as requiring transparent refund policies, creating accessible dispute resolution mechanisms, and implementing strict rules about consumer data collection and usage. Lenders who violate these regulations may face penalties including fines, potential license revocation, and criminal misdemeanor charges. The bill aims to bring greater oversight and consumer safety to the rapidly growing BNPL lending sector, which has emerged as a popular alternative to traditional credit in recent years. The law will take effect one year after becoming official, giving lenders time to adjust to the new regulatory environment.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A6757