December 18, 2025
Ms. Ross introduced the following bill; which was referred to the Committee on Financial Services
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.
Section 1. Short title
This Act may be cited as the Buy Now, Pay Later Protection Act of 2025
.
Sec. 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).
Sec. 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.