H.R. 6891

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6891 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 6891

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.

_______________________________________________________________________

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.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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.''.
<all>