Sponsor
Daniel Goldman
Representative · D-NY
Representative · D-NY
The bill extends clear Truth-in-Lending protections and disclosure rights to BNPL users, improving consumer safeguards, but it also raises compliance costs and could shrink or change popular low-cost BNPL products — and the tight 180‑day rulemaking timeline risks rushed or fragile regulations.
Consumers who use buy-now-pay-later (BNPL) products will be explicitly covered by Truth in Lending/Regulation Z, giving them clear legal credit protections (e.g., billing rules, dispute rights).
Consumers (especially low-income shoppers) will get standardized disclosures and error-resolution rights at the point of sale, improving transparency and helping avoid surprise charges or billing problems.
Small businesses and consumers gain faster regulatory clarity because the CFPB must complete rulemaking within 180 days, shortening uncertainty about how BNPL is regulated.
BNPL providers and merchants will face new compliance costs to follow Regulation Z, which may be passed on to shoppers as higher prices or lead merchants to drop BNPL options.
Some interest-free, short-term BNPL products (e.g., under four installments) may be restructured, limited, or discontinued to avoid Regulation Z coverage, reducing low-cost credit options for consumers.
The CFPB's 180-day deadline could force rushed rulemaking, increasing the risk the rules are unclear, legally vulnerable, or inadequate to address real-world practices.
Based on analysis of 2 sections of legislative text.
Adds a statutory definition of certain BNPL loans to TILA and requires the CFPB to apply Regulation Z disclosures and rules to those issuers within 180 days.
Official title: To amend the Truth in Lending Act to include buy now, pay later loans and issuers of such loans in the definition of credit card and credit issuer, respectively, and for other purposes.
Introduced June 11, 2026 by Daniel Goldman · Last progress June 11, 2026
Makes short-term “buy now, pay later” (BNPL) loans subject to the Truth in Lending Act by adding a statutory definition of such loans and including BNPL issuers within the definitions of credit and creditor. It requires the Consumer Financial Protection Bureau (CFPB) to adopt implementing rules within 180 days that apply Regulation Z disclosures and other TILA protections to qualifying BNPL products, consistent with the Bureau’s May 31, 2024 interpretive rule. The change brings many interest-free, closed-end installment purchases into the same federal consumer-credit framework used for other loans, meaning BNPL providers will generally have to follow TILA/Regulation Z requirements for disclosures and other consumer protections once the CFPB issues its rules.