Congress moves to regulate buy-now-pay-later lenders like credit cards
H.R. 6891 — Buy Now, Pay Later Protection Act of 2025 · Filed by Deborah Ross (D-NC) · 6 cosponsors · Introduced Dec 18, 2025 · Referred to committee
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What it does
This bill brings buy-now-pay-later (BNPL) lenders—companies like Affirm and Klarna that let consumers split purchases into interest-free installments—under the same consumer protection rules as credit card companies. It requires BNPL lenders to disclose terms clearly, give consumers the right to dispute charges, and submit to oversight by the Consumer Financial Protection Bureau. The CFPB has one year to write detailed rules on how these protections apply.
Why we flagged it
The bill extends Truth in Lending Act protections and CFPB oversight to buy-now-pay-later (BNPL) lenders, establishing them as regulated consumer credit products. This is fundamentally a regulatory expansion, not a tax or appropriations measure.
What the text implies
- BNPL lenders currently operate in a regulatory gray zone; this bill brings them under CFPB supervision and Truth in Lending Act disclosure requirements, potentially increasing compliance costs and reducing competitive advantage of non-bank BNPL providers relative to traditional credit card issuers.
- The definition of BNPL as 'closed-end consumer loan for a retail transaction repaid in not more than 4 interest-free installments with no finance charge' may exclude some existing BNPL products that charge fees or extend beyond 4 installments, creating definitional arbitrage opportunities.
The full analysis lists 4 implications of this text.
Who stands to gain
traditional credit card issuers (competitive advantage via regulatory parity); CFPB (expanded supervisory jurisdiction and fee-generating regulated entities); consumer advocacy groups (stronger legal protections)