Buy Now, Pay Later Protection Act of 2025

The Buy Now, Pay Later Protection Act of 2025 brings "buy now, pay later" (BNPL) loans under federal consumer credit regulations by amending the Truth in Lending Act (TILA). It defines BNPL loans as closed-end retail loans repaid in four or fewer interest-free installments with no finance charge, directly affecting consumers using these payment plans and BNPL lenders. The bill extends existing TILA protections - such as disclosure requirements and consumer defenses against creditors - to BNPL loans, updating references in key sections to include BNPL alongside credit cards. The Consumer Financial Protection Bureau (CFPB) must issue implementing rules within one year, bringing BNPL lenders under federal supervision for the first time.