Buy Now, Pay Later Protection Act of 2025

Buy Now, Pay Later Protection Act of 2025

This bill aims to create new rules and consumer protections for "Buy Now, Pay Later" (BNPL) services — the short-term payment plans offered by companies like Affirm, Klarna, and Afterpay that let shoppers split purchases into several installments, often interest-free. Currently, these services operate in a regulatory gray area and are not subject to the same federal rules that apply to traditional credit cards or loans. This bill would establish a clear legal framework governing how BNPL companies must operate.

Under the bill, BNPL providers would likely be required to clearly disclose fees, repayment terms, and any consequences for missed payments before a customer agrees to a plan. The legislation would also establish standards around how companies handle disputes, issue refunds when purchases are returned, and report payment activity. There may also be provisions addressing how BNPL companies assess whether a borrower can actually afford to repay before approving them for a plan.

This bill would affect a wide range of people — particularly the millions of Americans who regularly use BNPL services for everyday purchases like clothing, electronics, and even groceries. It would also directly impact the companies that offer these services, requiring them to comply with new federal standards. The bill has been referred to the House Committee on Financial Services, which is the standard first step in the legislative process, and it has not yet been voted on.