House Bill Would Extend Credit Card Protections to Buy Now, Pay Later Loans
Legislative Snapshot
- Bill: Buy Now Pay Later Consumer Protection Act of 2026
- Jurisdiction: United States Congress
- Status: Introduced in the U.S. House of Representatives
- Key Provisions: Expands TILA definitions to cover BNPL loans and issuers; directs CFPB rulemaking; applies certain Regulation Z requirements to BNPL providers
- Effective Date: Would take effect following enactment and subsequent CFPB rulemaking
- Industry Impact: Could subject BNPL providers to disclosure, billing, dispute resolution, and compliance requirements similar to those applicable to credit card issuers
A new bill introduced in the U.S. House of Representatives would bring Buy Now, Pay Later (BNPL) products under portions of the federal consumer credit framework that currently apply to traditional credit cards.
Rep. Dan Goldman, D-N.Y., introduced the Buy Now Pay Later Consumer Protection Act of 2026, legislation that would amend the Truth in Lending Act (TILA) to include BNPL loans within the definition of a credit card and BNPL providers within the definition of a card issuer. The proposal seeks to codify consumer protections that were outlined in a 2024 Consumer Financial Protection Bureau (CFPB) interpretive rule that has since been rescinded by the Trump administration.
Bill Would Direct CFPB to Issue New Rules
Under the legislation, the CFPB would be required to issue implementing regulations within 180 days of enactment. Those regulations would be based on the agency’s May 31, 2024, interpretive rule addressing the use of digital user accounts to access BNPL loans.
The bill would require the CFPB to apply portions of Regulation Z, including Subpart B and Section 1026.60, to BNPL providers. Those provisions govern many of the disclosures and consumer protections associated with credit card products.
If enacted, BNPL companies would likely face requirements related to account disclosures, billing statements, dispute resolution procedures, fee transparency, and other consumer protections commonly associated with credit cards.
Focus on Disclosure and Consumer Rights
According to Goldman’s office, the legislation is intended to provide BNPL users with protections similar to those available to traditional credit cardholders.
The bill highlights several areas where consumers would receive enhanced protections, including:
- Clear disclosure of fees and pricing
- Periodic statements showing charges, payments, credits, balances, and due dates
- Time to make payments before late fees or negative credit reporting occur
- Rights to dispute billing errors and unauthorized charges
- Refund protections for returned merchandise
Goldman said in a statement that BNPL products currently offer many consumers fewer protections than traditional credit cards despite serving a similar financing function.
BNPL Market Continues to Face Regulatory Scrutiny
The legislation arrives amid ongoing debate over how BNPL products should be regulated. BNPL financing has become increasingly popular among consumers seeking short-term installment payment options, particularly for online purchases.
Supporters of additional oversight have argued that consumers may not fully understand repayment obligations, fee structures, or the potential credit reporting consequences associated with BNPL products. Industry participants have generally maintained that BNPL offerings differ from revolving credit cards and should be regulated according to their distinct product characteristics.
The National Consumers League endorsed the legislation, according to Goldman’s office.
What It Means for the ARM Industry
While the bill is focused primarily on consumer protections, it could have downstream implications for creditors, fintech lenders, compliance professionals, and companies involved in servicing BNPL accounts.
If enacted, BNPL providers would likely need to update disclosure practices, billing procedures, dispute handling processes, and compliance management systems to align with Regulation Z requirements. Companies purchasing or servicing BNPL receivables could also face increased compliance expectations as the regulatory framework governing these products becomes more closely aligned with traditional consumer credit.
The bill has been introduced in the House and will need to advance through the legislative process before becoming law.
