BUY-NOW-PAY-LATER ACT

Reinserts the provisions of the introduced bill with the following changes. Provides that an owner, officer, or employee of a person required to be licensed under the Act is not required to be licensed to engage in activities conducted by the licensee under the Act. Removes a provision that any person who engages in the business regulated by the Act without the license required by the Act shall be guilty of a Class 4 felony. Provides that the Act does not apply to a merchant or merchant platform that makes a buy-now-pay-later loan available to a consumer through an agreement with a licensed buy-now-pay-later lender, if the merchant or merchant platform does not originate, underwrite, service, or hold an interest in any buy-now-pay-later loan. Provides that the Act also does not apply to a person who buys, acquires, or holds a partial interest in a loan as a passive investor, but does not otherwise originate, underwrite, or service the loan or control the servicing of the loan. Provides that a person that (i) was providing buy-now-pay-later loans in the State before January 1, 2028 and (ii) submits an application for a license on or before January 1, 2028 shall be deemed a provisional licensee authorized to continue operating under the Act until the Department of Financial and Professional Regulation acts on the application. Provides that any loan made under and in compliance with the Act is not required to comply with the Consumer Installment Loan Act or the Payday Loan Reform Act. Removes provisions concerning action for damages. Makes changes to provisions concerning definitions; applicability; examinations and prohibited activities; suspension, revocation of licenses, and fines and other discipline; underwriting; and consumer protections. Effective immediately.

Status

Passed

Signed or otherwise enacted

Status date

Jun 25, 2026

140 days ago

Current chamber

Senate

Session

2025-2026 Regular Session