Buy Now Pay Later Consumer Protection Act of 2026

Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is amended—

(1) in subsection (l), by adding at the end the following: The term includes a buy now, pay later loan.;

(2) in subsection (o), by adding at the end the following: The term includes a person who issues a buy now, pay later loan.; and

(3) by adding at the end the following:

The term buy now, pay later loan means a closed-end consumer loan for goods or services that—

(1) is repaid in not more than 4 interest-free installments;

(2) does not impose a finance charge; and

(3) is provided to a consumer, at the time such consumer seeks to purchase goods or services, to finance the purchase of such goods or services.

Not later than 180 days after the date of the enactment of this Act, the Bureau of Consumer Financial Protection shall issue rules to carry out the amendments made by this section.

The rules issued under paragraph (1) shall—

(A) be in accordance with the interpretive rule entitled Truth in Lending (Regulation Z); Use of Digital User Accounts To Access Buy Now, Pay Later Loans published by the Bureau of Consumer Financial Protection in the Federal Register on May 31, 2024 (89 Fed. Reg. 47068); and

(B) apply subpart B of part 1026 of title 12, Code of Federal Regulations, and part 1026.60 of title 12, Code of Federal Regulations, to issuers of buy now, pay later loans (as defined in subsection (ff) of section 103 of the Truth in Lending Act (15 U.S.C. 1602), as added by this section).