Buy Now Pay Later Consumer Protection Act of 2026
- Bill Number
- H.R. 9275
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-06-11: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-07-01T16:07:31Z
AI-Generated Summary
Buy Now Pay Later Consumer Protection Act of 2026 (H.R. 9275)
Purpose
This legislation amends the Truth in Lending Act to extend existing consumer credit protections to buy now, pay later loans by treating them as credit cards and their providers as credit issuers. It aims to ensure these loans fall under federal disclosure and regulatory requirements.
Key Provisions
- Definition Updates:
- Adds "buy now, pay later loan" to the definition of "credit card."
- Includes issuers of such loans in the definition of "credit issuer."
- Buy Now, Pay Later Loan Definition: A closed-end consumer loan for goods or services that is repaid in no more than four interest-free installments, carries no finance charge, and is offered at the time of purchase.
- Rulemaking Requirement: Directs the Bureau of Consumer Financial Protection to issue rules within 180 days of enactment. These rules must align with a 2024 interpretive rule on digital accounts for such loans and apply specific regulations (Subpart B of Regulation Z and section 1026.60) to issuers.
Significant Changes to Existing Law
- Expands the Truth in Lending Act's scope beyond traditional credit cards to cover a new category of short-term, interest-free installment loans.
- Requires application of credit card-specific rules, such as those on disclosures and account management, to buy now, pay later products.
Potential Impacts
- Government Agencies: The Bureau of Consumer Financial Protection must develop and enforce new rules, increasing its oversight responsibilities.
- Citizens: Consumers using these loans may gain access to standardized disclosures and protections similar to those for credit cards.
- International Relations: No direct effects identified.
Main Stakeholders Affected
- Consumers who use buy now, pay later loans for purchases.
- Issuers and providers of buy now, pay later loans.
- The Bureau of Consumer Financial Protection.
- Retailers and merchants that partner with such loan programs.
Notable Legal, Constitutional, or Political Implications
- Legal: Broadens the reach of the Truth in Lending Act to a growing form of consumer financing without altering core constitutional authorities.
- Constitutional: No apparent implications regarding federal powers or individual rights.
- Political: Focuses on consumer protection in emerging financial products, potentially increasing compliance costs for private-sector lenders.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Goldman, Daniel S. [D-NY-10]
Recent Actions
- 2026-06-11: Referred to the House Committee on Financial Services.
- 2026-06-11: Introduced in House
- 2026-06-11: Introduced in House
Bill Versions
- Buy Now Pay Later Consumer Protection Act of 2026 — issued 2026-06-11 — PDF (3 pages)