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H.R. 6891House119th Congress (2025-2027)In Committee

Buy Now, Pay Later Protection Act of 2025

Sponsored by Deborah K. RossRep. Deborah K. Ross (D-NC)
Introduced December 18, 2025

AI-Generated Summary

Updated December 19, 2025 at 12:41 PM UTC

The Buy Now, Pay Later Protection Act of 2025 updates the Truth in Lending Act and the Consumer Financial Protection Act to extend existing consumer‑credit protections to buy now, pay later (BNPL) loans. It creates a definition for BNPL loans, applies the same disclosure and dispute‑resolution rules that cover credit cards, and puts BNPL lenders under the CFPB’s supervisory authority. The bill also directs the CFPB to issue rules within a year to implement these changes.

Key Provisions

  • Defines a “buy now, pay later loan” as a closed‑end consumer loan for a retail purchase that must be repaid in four or fewer interest‑free installments and carries no finance charge.
  • Amends the Truth in Lending Act so that the same disclosure, dispute‑resolution and consumer‑rights provisions that apply to credit cards and open‑end credit plans now also apply to buy now, pay later loans.
  • Requires the Consumer Financial Protection Bureau to issue implementing rules within one year to enforce the new TILA provisions for buy now, pay later loans.
  • Amends the Consumer Financial Protection Act to place providers of buy now, pay later loans under federal supervision, adding them to the list of activities the CFPB can regulate.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Financial Services.

Financial Services Committee

December 18, 2025

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HouseIntro Referral

Introduced in House

December 18, 2025

HouseIntro Referral

Referred to the House Committee on Financial Services.

Financial Services Committee

December 18, 2025

Bill Text

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Introduced in HouseIssued December 18, 2025

I

119th CONGRESS

1st Session

H. R. 6891

IN THE HOUSE OF REPRESENTATIVES

December 18, 2025

Ms. Ross introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To amend the Truth in Lending Act and the Consumer Financial Protection Act of 2010 to apply certain protections and oversight to buy now, pay later loans, and for other purposes.

1.

Short title

This Act may be cited as the Buy Now, Pay Later Protection Act of 2025.

2.

Application of the Truth in Lending Act to buy now pay later loans

(a)

In general

The Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended—

(1)

in section 103, by adding at the end the following:

(ff)

Buy now, pay later loan

The term buy now, pay later loan means a closed-end consumer loan for a retail transaction that—

(1)

is repaid in not more than 4 interest-free installments; and

(2)

does not impose a finance charge.

;

(2)

in section 127(a), by striking under an open end consumer credit plan and inserting under an open end consumer credit plan or a buy now, pay later loan each place it occurs;

(3)

in section 127(b), by striking under an open end consumer credit plan and inserting under an open end consumer credit plan or a buy now, pay later loan each place it occurs;

(4)

in section 170—

(A)

in the section heading, by striking Rights of credit card customers. and inserting Rights of credit card customers and buy now, pay later loan customers.;

(B)

in subsection (a)—

(i)

by striking a card issuer who has issued a credit card to a cardholder pursuant to an open end consumer credit plan and inserting a card issuer who has issued a credit card to a cardholder pursuant to an open end consumer credit plan or a creditor who has provided a buy now, pay later loan to a consumer;

(ii)

by striking in which the credit card and inserting in which the credit card or buy now, pay later loan;

(iii)

by striking honoring the credit card and inserting honoring the credit card or buy now, pay later loan each place it occurs;

(iv)

by striking provided by the cardholder and inserting provided by the cardholder or consumer;

(v)

by striking defenses against a card issuer and inserting defenses against a card issuer or creditor;

(vi)

by striking is the same person as the card issuer and inserting is the same person as the card issuer or creditor;

(vii)

by striking is controlled by the card issuer, and inserting is controlled by the card issuer or creditor,;

(viii)

by striking common control with the card issuer and inserting common control with the card issuer or creditor;

(ix)

by striking in the card issuer's products and inserting in the card issuer's or creditor’s products;

(x)

by striking by the card issuer in which and inserting by the card issuer or creditor in which; and

(xi)

by striking using the credit card issued by the card issuer and inserting using the credit card issued by the card issuer or the buy now, pay later loan provided by the creditor; and

(C)

in subsection (b)—

(i)

by striking asserted by the cardholder and inserting asserted by the cardholder or consumer;

(ii)

by striking at the time the cardholder first notifies the card issuer or the person honoring the credit card of such claim or defense and inserting at the time the cardholder or consumer first notifies the card issuer or creditor or the person honoring the credit card or buy now, pay later loan of such claim or defense; and

(iii)

by striking the cardholder's account and inserting the cardholder’s account or the consumer’s buy now, pay later loan account;

(5)

in section 161—

(A)

by striking in connection with an extension of consumer credit, and inserting in connection with an extension of consumer credit, including a buy now, pay later loan,

(B)

in subsection (d), by striking an open end consumer credit plan and inserting an open end consumer credit plan or a buy now, pay later loan; and

(6)

in section 171(a), by striking In the case of any credit card account under an open end consumer credit plan and inserting In the case of any credit card account under an open end consumer credit plan or buy now, pay later loan.

(b)

Rulemaking

The Bureau of Consumer Financial Protection shall, not later than 1 year after the date of this section shall issue such rules as the Bureau of Consumer Financial Protection determines necessary to carry out the amendments made by subsection (a).

3.

Federal supervision of buy now, pay later loan lenders

Section 1024(a)(1) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5514(a)(1)) is amended—

(1)

in subparagraph (D) by striking ; or and inserting a semicolon;

(2)

in subparagraph (E) by striking the period at the end and inserting ; or; and

(3)

by adding at the end:

(F)

offers or provides to a consumer a buy now, pay later loan as such term is defined in section 103 of the Truth in Lending Act.

.