A new bill in the House of Representatives would fold buy now, pay later loans into the same federal framework that governs credit cards, a shift that could reshape how the products are disclosed, serviced, and collected.
Rep. Dan Goldman [D-N.Y.] introduced the Buy Now, Pay Later Consumer Protection Act of 2026 this week. The measure amends the Truth in Lending Act to define a “buy now, pay later loan” and to treat issuers of those loans as credit card issuers. Under the bill, a BNPL loan is a closed-end consumer loan for goods or services that is repaid in no more than four interest-free installments, carries no finance charge, and is extended to the consumer at the point of purchase.
The legislation directs the Consumer Financial Protection Bureau to issue implementing rules within 180 days of enactment. Those rules would track the Bureau’s May 2024 interpretive rule on the use of digital user accounts to access BNPL loans, and would apply Regulation Z’s open-end credit provisions, including the credit card application and solicitation requirements.
BNPL companies would be required to provide clear fee and pricing disclosures, deliver periodic statements itemizing charges, fees, payments, credits, amounts due, and due dates, and identify where consumers should send billing disputes. The bill also mandates a window after a statement is delivered before late fees or negative credit reporting can occur, and it extends credit card style dispute rights, including refunds for returned items, the ability to challenge billing errors, and protection from liability for unauthorized charges.
The timing reflects a regulatory reversal. The CFPB under the Biden administration moved in 2024 to treat BNPL products as credit cards for certain purposes, but that interpretive rule was later rescinded, leaving BNPL users without a dedicated federal framework. Goldman has framed the bill as a response to growing reliance on the product for everyday expenses and to the fee structures that can accumulate when payments are missed. The National Consumers League has endorsed the measure.
As a minority-sponsored bill in the current Congress, its near-term prospects are uncertain. Still, it signals continued legislative interest in placing BNPL under established consumer credit rules, a question the industry will want to track closely.
