“Today DFS formally proposed regulations to create a licensing and oversight framework for buy now, pay later (BNPL) providers operating in New York,” the department said in a statement on Wednesday. mail On X. “The proposal opens a 60-day comment period.”
Bloomberg Law I mentioned Wednesday that some of the proposal’s provisions include requirements for BNPL lenders to obtain a license, submit monthly billing statements, cap their late fees at $8 and set up dispute resolution processes.
the FinTech Association (Free Trade Agreement) he said on Wednesday statement Through the proposed regulations, the Department of Financial Services is implementing the BNPL law passed by the New York Legislature as part of the 2025 state budget.
“We appreciate the work the Financial Services Administration has done in drafting these proposed regulations and look forward to providing our comments,” FTA President and CEO Show me He said in the statement. “As the buy now, pay later industry continues to grow, we welcome appropriate regulation that reflects the consumer protections and standards already in place at leading companies.”
PYMNTS reported in May 2025 that New York’s budget included legislation to create a framework for licensing and oversight of BNPL service providers The legislation will include protection barriers such as disclosure requirements, dispute resolution standards, limits on fees and expenses, and data privacy protection.
the American FinTech Council Although many provisions in the legislation are consistent with its BNPL standards, other language could limit consumer choice and reduce access to credit, she said at the time.
PYMNTS reported in February that DFS published proposed regulations for BNPL Financing options and that the draft regulations will be open for advance comment on the proposals until March 5.
Consumer Reports said at the time that BNPL loans lack many of the consumer protections that come with other forms of credit and that New York’s proposed BNPL regulations would provide the strongest protections for consumers of any state.
