Buy Now, Pay Later Protection Act of 2025

House Bill

H.R. 6891

119th Congress

Buy Now, Pay Later Protection Act of 2025

In Committee

Introduced:Dec 18, 2025

Primary Sponsor

Deborah Ross

D - NC

Cosponsors

0

Quick Stats

Summary

This bill brings "Buy Now, Pay Later" (BNPL) services like Klarna, Affirm, and Afterpay under the Truth in Lending Act and CFPB supervision. BNPL users would gain dispute rights similar to credit card users, including the ability to withhold payment when goods are defective. Lenders would face disclosure requirements and federal oversight.

Latest Action

Referred to the House Committee on Financial Services.

AI Summary

Plain-English explanation of this bill

This bill brings "Buy Now, Pay Later" (BNPL) services like Klarna, Affirm, and Afterpay under the Truth in Lending Act and CFPB supervision. BNPL users would gain dispute rights similar to credit card users, including the ability to withhold payment when goods are defective. Lenders would face disclosure requirements and federal oversight.

Last updated: 12/26/2025

Key Points

Main provisions of the bill

Defines BNPL loans as closed-end consumer loans with up to 4 interest-free installments and no finance charges
Applies credit card billing dispute protections (section 161) to BNPL purchases
Gives BNPL users rights to dispute charges and withhold payment for defective goods
Brings BNPL lenders under Consumer Financial Protection Bureau supervision
CFPB must issue implementing rules within 1 year
Addresses regulatory gap as BNPL has grown to billions in annual transactions

How This Impacts Americans

Potential effects on citizens and communities

Millions of Americans using BNPL services for online purchases would gain consumer protections they currently lack. BNPL companies would face compliance costs and CFPB examination. Consumers could dispute BNPL charges when products arrive damaged or never arrive. Retailers offering BNPL checkout options may see changes in how disputes are handled. Young consumers who prefer BNPL over credit cards would benefit most from added protections.

Policy Areas

No policy areas assigned yet.

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

6891, 119th Congress (2025). "Buy Now, Pay Later Protection Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/119-hr-6891