New York S 4606: Provides for the regulation of buy-now-pay-later lenders

Bill Text

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S04606 Summary:

BILL NOS04606 

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SAME ASNo Same As

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SPONSORSANDERS

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COSPNSR

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MLTSPNSR

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Add Art 14-B §§735 - 749, amd §§36, 37, 39, 42 & 44, Bank L

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Provides for the regulation of buy-now-pay-later lenders; requires such lenders to be licensed; establishes prohibited acts, limitations on loans, and consumer protections.

Go to top S04606 Actions:

BILL NOS04606 

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02/10/2025REFERRED TO BANKS

01/07/2026REFERRED TO BANKS

Go to topS04606 Committee&nbspVotes:

Go to topS04606 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS04606 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 4606

 2025-2026 Regular Sessions

 IN SENATE

 February 10, 2025
 ___________

 Introduced by Sen. SANDERS -- read twice and ordered printed, and when
 printed to be committed to the Committee on Banks

 AN ACT to amend the banking law, in relation to the regulation of buy-
 now-pay-later lenders

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The banking law is amended by adding a new article 14-B to
 2 read as follows:

 3 ARTICLE XIV-B
 4 BUY-NOW-PAY-LATER LENDERS

 5 Section 735. Short title.
 6 736. Definitions.
 7 737. License.
 8 738. Conditions precedent to issuing a license; procedure where
 9 application is denied.
 10 739. License provisions and posting.
 11 740. Application for acquisition of control of buy-now-pay-later
 12 lender by purchase of stock.
 13 741. Grounds for revocation or suspension of license; procedure.
 14 742. Superintendent authorized to examine.
 15 743. Licensee's books and records; reports.
 16 744. Acts prohibited.
 17 745. Limitation on charges on buy-now-pay-later loans.
 18 746. Consumer protections.
 19 747. Authority of superintendent.
 20 748. Penalties.
 21 749. Severability.
 22 § 735. Short title. This article shall be known and may be cited as
 23 the "Buy Now Pay Later act".

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01886-02-5

 S. 4606 2

 1 § 736. Definitions. As used in this article, the following terms shall
 2 have the following meanings:
 3 1. "Consumer" means an individual who is a resident of the state of
 4 New York.
 5 2. "Buy-now-pay-later loan" means credit provided to a consumer at the
 6 time of purchase in connection with such consumer's particular purchase
 7 of goods or services, other than a motor vehicle as defined under
 8 section one hundred twenty-five of the vehicle and traffic law, that
 9 requires repayment of the principal in a fixed number of substantially
 10 equal installments with no interest.
 11 3. "Buy-now-pay-later lender" means a person who offers buy-now-pay-
 12 later loans in this state. For purposes of the preceding sentence,
 13 "offer" means offering to extend credit through a buy-now-pay-later loan
 14 directly to a consumer at the time of purchase or operating a platform,
 15 software, or to operate a system with which a consumer interacts and the
 16 primary purpose of which is to allow third parties to offer buy-now-pay-
 17 later loans, or both. A person who sells goods or services to a consumer
 18 and extends credit to such consumer in connection with such consumer's
 19 particular purchase of such goods or services shall not be considered a
 20 buy-now-pay-later lender with respect to such transactions. A person
 21 shall not be considered a buy-now-pay-later lender on the basis of
 22 isolated, incidental or occasional transactions which otherwise meet the
 23 definitions of this section.
 24 4. "Exempt organization" means any banking organization or foreign
 25 banking corporation licensed by the superintendent or the comptroller of
 26 the currency to transact business in this state, national bank, federal
 27 savings bank, federal savings and loan association, or federal credit
 28 union organized under the laws of any other state. Subject to such
 29 regulations as may be promulgated by the superintendent, "exempt organ-
 30 ization" may also include any subsidiary of such entities.
 31 5. "Licensee" means a person who has been issued a license pursuant to
 32 this article.
 33 6. "Person" means an