Bill > HR6891

This bill provides new protections and regulatory oversight for "Buy Now, Pay Later" (BNPL) loans, which are short-term, interest-free installment loans typically used for retail purchases. The bill amends the Truth in Lending Act to define BNPL loans as closed-end consumer loans repaid in four or fewer interest-free installments without finance charges. It extends existing consumer protection provisions originally designed for credit cards to now cover BNPL loans, including protections related to billing disputes, merchant claims and defenses, and account disclosures. Additionally, the bill gives the Bureau of Consumer Financial Protection supervisory authority over BNPL lenders, allowing the agency to regulate and oversee these financial products similar to how they currently regulate other consumer credit products. The legislation requires the Consumer Financial Protection Bureau to issue comprehensive rules implementing these changes within one year of the bill's passage, with the goal of providing consumers more transparency and safeguards when using these increasingly popular short-term financing options.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/6891/all-info