An Act protecting consumers engaging with buy now pay later lenders

This bill requires Buy Now, Pay Later lenders operating in Massachusetts to obtain a small loan business license and comply with existing state lending regulations. It specifically targets major companies like Afterpay, Klarna, and Sezzle by mandating that the state's Division of Banks investigate whether they are currently acting as unlicensed loan servicers. If found operating without a license, these companies would be required to apply for one within six months and adhere to rules regarding interest and fees. Additionally, the law mandates that these lenders clearly disclose the total cost of the loan, potential late fees, and the impact on credit scores to consumers at the point of sale.