Buy Now, Pay Later Protection Act of 2025

This bill, the Buy Now, Pay Later Protection Act of 2025, aims to extend significant consumer protections and federal oversight to "buy now, pay later" (BNPL) loans. It defines a BNPL loan as a closed-end consumer loan for retail transactions, repaid in up to four interest-free installments without finance charges. The legislation amends the Truth in Lending Act (TILA) to apply several key consumer safeguards to these loans. Specifically, it grants BNPL users rights similar to credit card holders regarding billing error resolution and the ability to assert claims and defenses against merchants for faulty goods or services. This ensures that consumers using BNPL services have avenues for recourse if issues arise with their purchases. Furthermore, the bill mandates that the Consumer Financial Protection Bureau (CFPB) issue implementing rules within one year of enactment. Crucially, it also amends the Consumer Financial Protection Act of 2010 to explicitly bring BNPL loan providers under the CFPB's federal supervisory authority, ensuring regulatory oversight of this growing financial product.