Overview
- DFS opened a pre‑proposal comment window through March 5, with a formal 60‑day comment period to follow publication and the rule taking effect 180 days after adoption.
- The draft defines BNPL broadly as closed‑end purchase‑money credit for goods or services other than motor vehicles, covering originators, platforms, and loan acquirers, while federally chartered banks and credit unions are exempt.
- Non‑exempt providers must obtain a BNPL license and state‑chartered banking entities need DFS authorization plus product‑specific category permissions, with existing lenders required to apply within 45 days of effectiveness and receiving provisional authority during review.
- Interest on interest‑bearing BNPL is capped at 16% with tightly limited penalty fees (generally up to $8), restrictions on repeat payment attempts and payment‑method charges, and no prepayment penalties.
- Providers must deliver TILA‑style disclosures and periodic statements, follow credit‑card‑like dispute procedures, apply reasonable ability‑to‑pay underwriting, and obtain granular opt‑in consent for non‑servicing data uses with deletion upon withdrawal.