The New York State Department of Financial Services has published proposed rules to implement New York’s new law for buy now, pay later (BNPL) loans, creating a licensing and supervisory framework for BNPL providers and setting consumer protection requirements for disclosures, fees, dispute handling and data privacy. The proposal would require any entity engaged in BNPL activity in New York to be licensed and supervised, prohibit excessive fees including convenience charges, and limit late fees and other penalty fees. It would also require lenders to disclose whether BNPL loans will be reported to credit reporting agencies, establish standards for timely resolution of consumer disputes, and include protections to prevent misuse or exploitation of consumer data. DFS noted the draft reflects information received through its pre-rulemaking request for information on fee structures, underwriting processes, and the impact of fee and interest limits on BNPL underwriting and business. The proposed regulation is subject to a 10-day preproposal comment period, followed by a 60-day public comment period upon publication in the State Register. The law and regulation would take effect 180 days after the rule is adopted, with an additional transitional period for providers already offering BNPL loans in New York.
New York State Department of Financial Services 2026-02-23
New York State Department of Financial Services proposes licensing and consumer protection rules for buy now pay later lenders
The New York State Department of Financial Services has proposed rules to implement New York's new law for buy now, pay later (BNPL) loans, establishing a licensing and supervisory framework. The rules include consumer protection requirements for disclosures, fees, dispute handling, and data privacy, prohibit excessive fees, and limit late and penalty fees. Lenders must disclose credit reporting practices and ensure timely dispute resolution, with protections against consumer data misuse.