BUY-NOW-PAY-LATER ACT

Summary

If enacted, this bill would establish a licensing and regulatory framework for buy-now-pay-later (BNPL) lenders in Illinois, requiring them to obtain a license from the Department of Financial and Professional Regulation. It exempts merchants, passive investors, and platforms that do not originate, underwrite, or service BNPL loans, and provides provisional licensing for existing lenders who apply by January 1, 2028. The bill also exempts BNPL loans from the Consumer Installment Loan Act and Payday Loan Reform Act, and imposes underwriting and consumer protection requirements.