Trade Groups Criticize New York’s Proposed BNPL Regulations
The American Fintech Council (AFC) and the Financial Technology Association (FTA) have criticized proposed buy now, pay later (BNPL) regulations by the New York State Department of Financial Services. The groups argue that the rules could limit access to affordable credit for consumers in the state. Among other requirements, BNPL providers would be mandated to assess borrowers' income and indebtedness per transaction under the new framework. The proposed rule changes include licensing mandates, dispute resolution standards, fee caps, data privacy regulations, and credit reporting obligations. The AFC estimates that if implemented, these rules could reduce available credit in New York by over $500 million annually. The state had opened a 60-day public comment period for the proposal, which closed on September 14. New York’s Department of Financial Services claims the regulations will protect consumers from excessive fees and data misuse while ensuring transparency and fair dispute resolution processes. Other states like Illinois have also introduced BNPL-related laws in recent months.
Topics: BNPL regulations buy now pay later consumer credit fintech