Bill would apply credit card-style rules to buy now, pay later loans
In committeeH.R. 6891Latest action
Sponsor: Deborah K. Ross · Representative · NC
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Official title: Buy Now, Pay Later Protection Act of 2025
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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The bill would extend Truth in Lending Act protections and CFPB oversight to buy now, pay later loans.
45-second read · 4 questions answered below
What does this do?
This bill extends federal consumer protection rules under the Truth in Lending Act to "buy now, pay later" loans, defined as purchase loans repaid in four or fewer interest-free payments. It gives buy now, pay later users rights similar to credit card holders, such as disputing charges and withholding payment over purchase problems, and requires the CFPB to write implementing rules within a year and gain supervisory authority over these lenders.
Who does it affect?
Consumers who use buy now, pay later services like Klarna, Afterpay, and Affirm for purchases; and fintech firms and payment apps that offer these loans and would face new federal oversight.
Why does it matter?
Consumers would gain formal dispute and billing protections they currently lack with these loans. Companies offering buy now, pay later loans would face new compliance requirements and CFPB examination similar to banks and credit card issuers.
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Where does it stand?
- IntroducedDec 18, 2025
- House committeeYou are here · Dec 18, 2025
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Referred to the House Committee on Financial Services.