ALBANY, N.Y.—New York Governor Kathy Hochul has formally established regulations for buy now, pay later lending in the state, adopting a more assertive approach as the CFPB takes a lighter regulatory stance under the new Administration.
BNPL loans are increasingly popular but pose risks to consumers, including overextension, inconsistent credit reporting, data exploitation, and excessive fees. These concerns highlight the need for stronger oversight in this rapidly growing financial sector, Hochul’s office explained on the governor’s website.
“Governor Hochul proposes legislation to establish a licensing and supervision framework for buy now, pay later providers. This initiative will introduce safeguards, such as disclosure requirements, dispute resolution standards, late fee limits, and data privacy protections to ensure consumers are better protected when using these financial products,” the website states.