Bill > SB3561

This bill, titled the "Buy-Now-Pay-Later Act," establishes the "Buy-Now-Pay-Later Loan Regulation Act" to govern companies offering buy-now-pay-later loans, which are defined as closed-end credit for purchasing goods or services that can be paid in installments, with or without interest or finance charges. To operate as a buy-now-pay-later lender in the state, individuals or entities must register with the Division of Financial Institutions of the Department of Financial and Professional Regulation, a process that involves paying a $5,000 fee, submitting detailed information about their business, and agreeing to abide by the Act's requirements. The Secretary of Financial and Professional Regulation is granted broad powers to administer the Act, including issuing or denying registrations, revoking or suspending existing ones for violations, investigating complaints, subpoenaing witnesses and documents, and imposing penalties such as fines or requiring restitution for consumers. Crucially, buy-now-pay-later lenders must provide clear and conspicuous disclosures to consumers about the loan terms, repayment schedule, potential fees, and dispute resolution processes, and are required to conduct reasonable risk-based underwriting. Violations of this Act are considered unlawful practices under the Consumer Fraud and Deceptive Business Practices Act, allowing for enforcement through that existing law. The Act also includes various exemptions for certain types of financial institutions and transactions, and clarifies that its provisions supplement, rather than replace, other applicable laws.

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https://www.ilga.gov/Legislation/BillStatus?DocNum=3561&GAID=18&DocTypeID=SB&SessionID=114&GA=104