ALBANY, N.Y.–New York Gov. Kathy Hochul has announced she plans to introduce legislation that would require companies providing buy now, pay later (BNPL) financing to obtain a license to operate in the state.
The proposed legislation would also permit the New York Department of Financial Services to propose and issue regulations for the industry, according to several reports. In New York, a governor can introduce legislation by way of the executive budget.
In a news release, the governors office said the bill and any potential regulations would seek to “establish strong industry protections around disclosure requirements, dispute resolution and credit reporting standards, late fee limits, consumer data privacy, and guidelines to curtail dark patterns and debt accumulation and overextension.”
Credit Unions are Cautioned
As CUToday.info has been reporting, BNPL financing has exploded in usage, even for small purchases, as more household budgets have felt financial strains. Because the BNPL financing does not appear in credit reports, credit unions have been cautioned that more members may be in precarious financial condition than the credit union is aware.
The New York legislation is expected to be introduced later this month.
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