Buy Now, Pay Later Protection Act of 2025
Legislative Progress
In CommitteeMs. Ross introduced the following bill; which was referred to …
Summary
What This Bill Does
The Buy Now, Pay Later Protection Act of 2025 extends the same consumer protections that apply to credit cards to "Buy Now, Pay Later" (BNPL) services like Affirm, Klarna, and Afterpay. It also places BNPL companies under federal supervision by the Consumer Financial Protection Bureau (CFPB).
Who Benefits and How
Consumers using BNPL services gain significant new protections, including the right to dispute charges, receive clear billing statements, and resolve billing errors - the same rights credit card holders have today. Traditional banks and credit card companies also benefit indirectly, as BNPL competitors will now face similar regulatory requirements, creating a more level playing field.
Who Bears the Burden and How
Buy Now, Pay Later companies (Affirm, Klarna, Afterpay, Zip, Sezzle, and others) face increased compliance costs as they must now meet Truth in Lending Act disclosure requirements, handle consumer disputes formally, and submit to CFPB examinations and oversight. Retailers who have integrated BNPL options into their checkout processes may also face some compliance requirements.
Key Provisions
- Defines BNPL loans as consumer credit repaid in 4 or fewer interest-free installments
- Extends credit card disclosure requirements (like clear billing statements) to BNPL transactions
- Gives BNPL customers the same dispute rights as credit card holders when products are defective or not delivered
- Adds BNPL lenders to the list of entities the CFPB can examine and supervise
- Requires CFPB to issue implementing rules within one year
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Extends Truth in Lending Act consumer protections and CFPB oversight to Buy Now, Pay Later (BNPL) loan providers, treating them similarly to credit card issuers.
Policy Domains
Legislative Strategy
"Apply existing credit card consumer protections to the emerging BNPL industry by amending the Truth in Lending Act to include BNPL loans alongside credit cards"
Likely Beneficiaries
- Consumers using BNPL services
- Consumer advocacy groups
Likely Burden Bearers
- Buy Now Pay Later companies (Affirm, Klarna, Afterpay, etc.)
- Fintech companies offering BNPL services
- Retailers with integrated BNPL offerings
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_bureau"
- → Bureau of Consumer Financial Protection (CFPB)
- "the_bureau"
- → Bureau of Consumer Financial Protection (CFPB)
Key Definitions
Terms defined in this bill
A closed-end consumer loan for a retail transaction that is repaid in not more than 4 interest-free installments and does not impose a finance charge.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology