The New York Department of Financial Services has published
proposed rules governing Buy Now, Pay Later (BNPL) financing plans
operating in the state.
The proposal, among other things, would require BNPL providers
to register with the state. The regulations implement a law signed
by Governor Kathy Hochul as part of her FY26 budget plan.
Some states have been studying how to fill a void created in
May, when the CFPB said it no longer would prioritize enforcement
of BNPL rules. And advocates say that New York law could provide a
model for BNPL enforcement.
"Too many New Yorkers have learned the hard way that some
'Buy Now, Pay Later' products are designed to trip them up
with junk fees and overly burdensome fine print instead of helping
them build a stable financial future," Hochul said, in
announcing the rules. "These new
nation-leading regulations ensure that lenders know we have clear
disclosures, limits on fees and real oversight so families
don't get pushed
