H.R. 6891 — Buy Now, Pay Later Protection Act of 2025

This section amends the Truth in Lending Act (TILA) to define a "buy now, pay later loan" (BNPL loan) as a closed-end consumer loan for a retail transaction that is repaid in not more than 4 interest-free installments and imposes no finance charge (new TILA §103(ff)). It extends specified TILA protections—originally applicable only to open-end consumer credit plans (i.e., credit cards)—to BNPL loans, including (1) billing statement requirements under TILA §127; (2) billing error resolution rights and defenses assertable against creditors (equivalent to card issuers) and sellers under TILA §170 (with conforming changes to the section heading); (3) prohibitions on certain creditor practices under TILA §161; and (4) limitations on liability for unauthorized use under TILA §171(a). (Thus, BNPL customers gain credit card-like rights to dispute charges with creditors and assert claims or defenses against sellers for faulty goods or services.) The Bureau of Consumer Financial Protection must issue implementing rules not later than 1 year after enactment.

This section expands the supervisory authority of the Consumer Financial Protection Bureau (CFPB) over nonbank covered persons by adding to the list of entities subject to examination and reporting requirements those that offer or provide buy now, pay later loans, as defined in the Truth in Lending Act. (As background, CFPB supervision under this provision assesses compliance with federal consumer financial laws, detects consumer risks, and evaluates activities of nonbanks such as mortgage servicers, larger market participants, and payday lenders.)