Buy Now, Pay Later Protection Act of 2025

This bill would add a legal definition of a "buy now, pay later loan" to the Truth in Lending Act: a closed-end consumer loan for a retail purchase that is repaid in four or fewer interest-free installments with no finance charge. It would apply several existing credit card rules to these loans, including disclosure requirements, billing error dispute procedures, the right to raise claims against the lender over a purchase, and rules on how payments are applied. The Consumer Financial Protection Bureau would have to issue rules to carry out these changes within one year. The bill would also give the Bureau authority to supervise companies that offer or provide these loans.

Full text and official record on Congress.gov

Sponsors

• Jack Reed Democrat sponsor
• 4 cosponsors