Congress·In Committee·H.R. 6891

Congress Proposes New Rules to Give 'Buy Now, Pay Later' Users the Same Protections as Credit Card Holders

Buy Now, Pay Later Protection Act of 2025

3 months ago·View on Congress.gov

Legislative Progress

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Senate

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Key Points

This bill would require 'buy now, pay later' companies to follow the same federal rules as credit card companies. These services, which often let you pay for a purchase in four interest-free installments, are currently not covered by many of the same consumer protection laws that apply to traditional credit.
If passed, users would gain the legal right to dispute charges for items that are broken, never arrive, or were charged in error. This gives shoppers a way to get their money back through the lender, similar to how you can call a credit card company to fix a billing mistake.
The bill gives the Consumer Financial Protection Bureau (CFPB) the power to supervise these lenders. This means the government can regularly check the companies' books and business practices to make sure they aren't using unfair tactics or hidden fees to take advantage of customers.
The goal is to close a loophole in the Truth in Lending Act. Because many of these plans don't charge interest, they have avoided strict disclosure rules. This bill ensures that even interest-free loans must provide clear information to consumers about what they owe and when.
The CFPB would be required to write and finalize specific new rules for these companies within one year of the bill becoming law.

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Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions

Dec 18, 2025House

Referred to the House Committee on Financial Services.

Dec 18, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Within 1 year of enactment

CFPB required to finalize rules for buy now, pay later companies

If the bill becomes law, the CFPB has one year to write specific rules that BNPL lenders must follow, including billing disclosure requirements and dispute procedures. Until these rules are finalized, companies may not yet be fully subject to enforcement.

Related News

4 articles

Washington Post·3 months ago

Buy now, pay later, panic ... never?

As holiday shopping hits record levels, legislation like the Buy Now, Pay Later Protection Act seeks to curb predatory practices. While some fear a debt crisis, others argue BNPL is simply a modern alternative to credit cards that requires similar, but not stifling, consumer protections.

CL~

The Hill·3 months ago

Does America have a 'Buy Now, Pay Later' problem?

Robby Soave discusses the rising popularity of 'Buy Now, Pay Later' services and the new legislative efforts in Congress to regulate the industry. The bill aims to close loopholes that currently allow BNPL providers to avoid the strict consumer protection rules that apply to credit card issuers.

London Evening Standard·over 1 year ago

New buy now pay later protections set to come into force from 2026

Shoppers will be protected by new rules for buy now pay later (BNPL) products from 2026. The government plans to bring companies under the supervision of financial watchdogs to ensure borrowers receive clear information and have strong rights when issues like broken or undelivered items arise.