Albany, NY – Assemblymember Pamela J. Hunter (128th Assembly District) shared that licensure policy on Buy Now, Pay Later credit products (BNPL) was included in the Assembly’s One House budget proposal. Assemblymember Hunter first sponsored legislation in 2024 to regulate the BNPL amidst growing demand. BNPL products generally allow for an individual to purchase consumer goods in set installment payments that are usually without interest and may have a set fee. In light of continued inflation, concern has grown among consumer protection organizations and regulators that BNPL offerings are contributing to an increasing, untraceable surge in consumer debt since major credit bureaus currently do not include BNPL activity in credit reports. Assemblymember Hunter, who serves as the body’s Speaker Pro Tempore, also serves as the President of the National Council of Insurance Legislators (NCOIL). Hunter previously served as Chair to the Assembly Banks Committee when the legislation was originally introduced.

Assemblymember Hunter stated, “While new FinTech products such as BNPL have created new credit options for consumers that help to limit interest and manage cashflow, we must be mindful of the potential drawbacks. BNPL licensure will create common sense consumer protections while balancing the needs of this growing industry.”

BNPL licensure standards were included in all 3 New York budget proposals, with some variation between the Assembly, Senate and Executive policies. As the BNPL bill sponsor, Hunter intends to take on a proactive role as state budget deliberations continue. The significance of state legislators and regulators regarding consumer protections has been reexamined in recent weeks as the Trump Administration has created uncertainty around the fate of watchdog authorities such as the Consumer Financial Protection Bureau (CFPB).

Consumer satisfaction with BNPL products has been largely positive, but concerns remain around supporting best practices, deterring bad actors and limiting consumer exposure to ballooning and underreported debt burdens that may be above recommended debt to income ratios. The proposals between the two Houses and the Governor mainly contemplate the definition of what qualifies as a BNPL product, exempted entities, prohibiting deceptive practices, providing disclosures, underwriting standards, recordkeeping requirements, refund policies, DFS regulatory authority over BNPL, penalties for noncompliance, and allowable fees and/or interest.