SB 3561 Illinois Senate · 104th Regular Session

BUY-NOW-PAY-LATER ACT

Summary

Creates the Buy-Now-Pay-Later Loan Regulation Act. Provides that it is unlawful for a person to act as a buy-now-pay-later lender unless the person registers with the Division of Financial Institutions of the Department of Financial and Professional Regulation. Sets forth requirements for registration; duties and powers of the Secretary of Financial and Professional Regulation; and administrative procedures. Provides that a buy-now-pay-lender shall provide specified disclosures to recipients. Provides that a violation of the Act constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change.

Bill status signed all 5 stages cleared

Introduction

May 2026

Committee Review

May 2026

Senate Passage

Jun 2026

House Passage

Jun 2026

Signed into Law

Jun 2026

Introduced May 21, 2026 Signed Jun 25, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed → Enrolled · 1 edit · Jun 25, 2026

MINOR

The document provided is a standard formatting update from the 'Engrossed' version of the bill to the 'Enrolled' version, which is the final text signed into law. No substantive policy changes, definitions, or legal requirements were altered; the only modifications are the replacement of the bill status label and the renumbering of page footers.

TECHNICAL

The header label was changed from 'Engrossed' to 'Enrolled' to reflect the bill's final status, and page footer numbers were adjusted to match the new pagination.

Introduced → Engrossed · 7 edits · Jun 1, 2026

MODERATE

The bill was renamed from the 'Buy-Now-Pay-Later Loan Regulation Act' to the 'Buy-Now-Pay-Later Loan Consumer Protection Act' to better reflect its focus on safeguarding consumers. The definition of a regulated loan was significantly narrowed to only include loans with 4 or fewer installments or terms of 120 days or less, excluding larger loans for vehicles or mortgages. Several exemptions were added, such as loans for motor vehicles and residential mortgages, while the list of entities exempt from regulation was reorganized. The bill also updated terminology, replacing 'lender' with 'licensee' and clarifying that registration is now a licensure requirement.

Scope change

The bill's scope was narrowed by adding specific exclusions for motor vehicle loans, residential mortgages, and business inventory loans, while the applicability section was expanded to cover agents and affiliates involved in loan transactions.

DEFINITION

Renamed the bill from 'Regulation Act' to 'Consumer Protection Act'.

Narrowed the definition of a 'buy-now-pay-later loan' to strictly include only loans with 4 or fewer installments or terms of 120 days or less.

Added specific exclusions for motor vehicle loans, residential mortgage loans, and loans for business inventory.

ELIGIBILITY

Replaced the term 'Buy-now-pay-later lender' with 'Lender' and 'Applicant' with 'Licensee', indicating a shift from registration to a formal licensing requirement.

SCOPE

Reorganized and expanded the list of entities exempt from the Act, explicitly adding motor vehicles and residential mortgages to the exclusions.

Expanded the applicability section to include agents, affiliates, and subsidiaries that facilitate or arrange loans, ensuring broader coverage of the lending ecosystem.

REQUIREMENT

Added a new section stating that no person may engage in the regulated business without a license, and clarified that owners or officers of licensed entities do not need individual licenses.

Floor votes · Senate May 21, 2026 · House May 31, 2026

How they voted

55–0

Passed · 3 other

Total votes 58

May 21, 2026

D Democratic39

36 Yea 3

92% Yea

R Republican19

19 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jun 25, 2026

Signed into law

Governor Approved

upper

Jun 1, 2026

Upper · Passed

Passed Both Houses

upper

Jun 1, 2026

Lower · Passed

Third Reading - Short Debate - Passed 116-000-000

lower

May 31, 2026

House · Passed

House Vote: pass (114-0-2)

house

May 27, 2026

Lower · Passed

Do Pass / Short Debate Judiciary - Civil Committee; 019-000-000

lower

May 21, 2026

Lower · Passed

Committee/Final Action Deadline Extended-9(b) May 31, 2026

lower

May 21, 2026

Committee

Assigned to Judiciary - Civil Committee

lower

May 21, 2026

Committee

Referred to Rules Committee

lower

May 21, 2026

Introduced

Arrived in House

lower

May 21, 2026

Amended

Senate Floor Amendment No. 2 Tabled Pursuant to Rule 5-4(a)

upper

May 21, 2026

Upper · Passed

Third Reading - Passed; 056-000-000

upper

May 21, 2026

Upper · Passed

Senate Floor Amendment No. 4 Adopted; Hastings

upper

May 21, 2026

Upper · Passed

Senate Floor Amendment No. 3 Adopted; Hastings

upper

May 20, 2026

Introduced

Senate Floor Amendment No. 4 Recommend Do Adopt Judiciary; 008-000-000

upper

May 20, 2026

Introduced

Senate Floor Amendment No. 3 Recommend Do Adopt Judiciary; 008-000-000

upper

May 20, 2026

Introduced

Senate Floor Amendment No. 2 Postponed - Judiciary

upper

May 20, 2026

Introduced

Senate Floor Amendment No. 4 Assignments Refers to Judiciary

upper

May 20, 2026

Committee

Senate Floor Amendment No. 4 Referred to Assignments

upper

May 20, 2026

Introduced

Senate Floor Amendment No. 4 Filed with Secretary by Sen. Michael E. Hastings

upper

May 19, 2026

Introduced

Senate Floor Amendment No. 3 Assignments Refers to Judiciary

upper

May 15, 2026

Committee

Rule 3-9(a) / Re-referred to Assignments

upper

May 15, 2026

Committee

Senate Floor Amendment No. 3 Referred to Assignments

upper

May 15, 2026

Introduced

Senate Floor Amendment No. 3 Filed with Secretary by Sen. Michael E. Hastings

upper

Apr 15, 2026

Introduced

Senate Floor Amendment No. 2 Postponed - Judiciary

upper

Apr 14, 2026

Introduced

Senate Floor Amendment No. 2 Assignments Refers to Judiciary

upper

Apr 13, 2026

Committee

Senate Floor Amendment No. 2 Referred to Assignments

upper

Apr 13, 2026

Introduced

Senate Floor Amendment No. 2 Filed with Secretary by Sen. Michael E. Hastings

upper

Mar 11, 2026

Upper · Passed

Do Pass as Amended Judiciary; 009-000-000

upper

Mar 11, 2026

Upper · Passed

Senate Committee Amendment No. 1 Adopted

upper

Mar 10, 2026

Upper · Passed

Senate Committee Amendment No. 1 Assignments Refers to Judiciary

upper

Mar 9, 2026

Committee

Senate Committee Amendment No. 1 Referred to Assignments

upper

Mar 9, 2026

Introduced

Senate Committee Amendment No. 1 Filed with Secretary by Sen. Michael E. Hastings

upper

Feb 17, 2026

Committee

Assigned to Judiciary

upper

Feb 5, 2026

Committee

Referred to Assignments

upper

2 primary · 9 co-sponsors