Goldman Introduces New Legislation To Protect Users Of Buy Now, Pay Later

June 17, 2026 Press Release U.S. Representative Dan Goldman (NY-10) introduced new legislation to protect users of Buy Now, Pay Later (BNPL). The Buy NowPay Later Consumer Protection Act would provide the same key legal protections to BNPL users that apply to conventional credit cards. “In Trump’s nosediving economy, Americans are increasingly being forced to use Buy Now, Pay Later to cover basic expenses,” said Rep. Goldman . “But because BNPL lacks the same protections as credit cards, including clear disclosures of fees, dispute rights, and refunds for cancelled services, BNPL usage can be catastrophic for users’ personal finances and credit scores. I am introducing this legislation to protect buyers, crack down on BNPL ripoffs, and help keep money in Americans’ pockets.” Buy Now, Pay Later (BNPL) loans are short-term loans that allow consumers to make a purchase and pay it off in multiple interest-free payments. If the consumer misses or is late on a payment, they can be charged late fees, bounce payment fees, and other hidden fees, which can add up to the equivalent of a high annual percentage rate (APR). Often the consumer is required to authorize autopay to cover their payments. BNPL loans do not contribute positively to credit scores, but missed payments can negatively affect credit scores. In 2024, the Consumer Financial Protection Bureau under the Biden Administration issued a ruling to regulate BNPL loans as credit cards; that ruling has been overturned by the Trump Administration and BNPL users have been left with no federal protections. Specifically, the Buy Now Pay Later Consumer Protection Act wouldrequire BNPL companies to: Provide clear disclosures about fees and pricing. Provide periodic statements showing charges made, fees, payments and credits applied, amounts due, and due dates, as well as where to send billing disputes. Provide time after a statement is delivered to the consumer to pay before late fees or negative credit reporting Provide dispute rights such as the right to get a refund for returned items, right to challenge billing errors or improper charges, and the right to not be held liable for unauthorized uses. The legislation is endorsed by the National Consumers League. Full text of the legislation is available here . Issues : Economy