New York's Buy Now Pay Later (BNPL) legislation, initially proposed by Governor Kathy Hochul, has been superseded by a similar active bill introduced by Assemblymember Pamela Hunter. This bill, if passed, mandates BNPL lenders in New York to obtain a state license, applying to both direct lenders and platform operators facilitating BNPL loans. The legislation defines BNPL loans narrowly, excluding motor vehicle purchases and sellers who provide credit with their sales. Notably, the new bill aims to enhance consumer protections by prohibiting interest or fees on BNPL loans and requiring lender consent for data use, differing from the Governor's previous proposals. Licensed BNPL lenders would also be under strict regulatory oversight, including approval for significant ownership changes. This legislation could set a precedent for other states, reflecting New York's leadership in consumer financial protections.
Read the full article here.