Buy Now, Pay Later Protection Act of 2025

This bill defines "buy now, pay later" (BNPL) loans under federal law as short-term payment plans for retail purchases repaid in four or fewer interest-free installments with no fees. It extends existing consumer protections from the Truth in Lending Act to BNPL loans, requiring lenders to follow the same rules as credit card issuers regarding dispute resolution, account protections, and customer rights. The bill directly affects BNPL lenders (who must now comply with these rules) and consumers using BNPL services for retail purchases. The Consumer Financial Protection Bureau must issue implementing rules within one year of the law’s enactment.