,,ii  #aaith ,,congress  #ast ,session  
,s4 #cefa  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,december #ah1 
#bjbe,mr4 ,reed 7for himself1 ,mr4 ,van 
,hollen1 ,mr4 ,blumenthal1 and ,mrs4    
,gillibrand7 introduced the following   
bill2 which was read twice and referred 
to the ,committee on ,banking1 ,housing1
 and ,urban ,affairs  ,a ,,bill  ,to    
amend the ,truth in ,lending ,act and   
the ,consumer ,financial ,protection    
,act of #bjaj to apply certain          
protections and oversight to buy now1   
pay later loans1 and for other purposes4
  #a4 ,short title ,this ,act may be    
cited as the ,buy ,now1 ,pay ,later     
,protection ,act of #bjbe4  #b4         
,application of the ,truth in ,lending  
,act to buy now pay later loans  7a7 ,in
 general ,the ,truth in ,lending ,act   
7#ae ,u4,s4,c4 #afja et seq47 is        
amended-- 7#a7 in section #ajc 7#ae     
,u4,s4,c4 #afjb71 by adding at the end  
the following3  7ff7 ,buy now1 pay later
 loan ,the term buy now1 pay later loan 

means a closed-end consumer loan for a  
retail transaction that-- 7#a7 is repaid
 in not more than #d interest-free      
installments2 and  7#b7 does not impose 
a finance charge4  2  7#b7 in section   
#abg 7#ae ,u4,s4,c4 #afcg7-- 7,a7 in    
subsection 7a71 by striking under an    
open end consumer credit plan and       
inserting under an open end consumer    
credit plan or a buy now1 pay later loan
 each place it occurs2 and  7,b7 in     
subsection 7b71 by striking under an    
open end consumer credit plan and       
inserting under an open end consumer    
credit plan or a buy now1 pay later loan
 each place it occurs2  7#c7 in section 
#agj 7#ae ,u4,s4,c4 #afff;i7-- 7,a7 in  
the section heading1 by striking ,rights
 of credit card customers4 and inserting
 ,rights of credit card customers and   
buy now1 pay later loan customers42     
7,b7 in subsection 7a7-- 7i7 by striking
 a card issuer who has issued a credit  
card to a cardholder pursuant to an open
 end consumer credit plan and inserting 

a card issuer who has issued a credit   
card to a cardholder pursuant to an open
 end consumer credit plan or a creditor 
who has provided a buy now1 pay later   
loan to a consumer2  7ii7 by striking in
 which the credit card and inserting in 
which the credit card or buy now1 pay   
later loan2  7iii7 by striking honoring 
the credit card and inserting honoring  
the credit card or buy now1 pay later   
loan each place it occurs2  7iv7 by     
striking provided by the cardholder and 
inserting provided by the cardholder or 
consumer2  7v7 by striking defenses     
against a card issuer and inserting     
defenses against a card issuer or       
creditor2  7vi7 by striking is the same 
person as the card issuer and inserting 
is the same person as the card issuer or
 creditor2  7vii7 by striking is        
controlled by the card issuer1 and      
inserting is controlled by the card     
issuer or creditor12  7viii7 by striking
 common control with the card issuer and
 inserting common control with the card 

issuer or creditor2  7ix7 by striking in
 the card issuer's products and         
inserting in the card issuer's or       
creditor's products2  7x7 by striking by
 the card issuer in which and inserting 
by the card issuer or creditor in which2
 and  7xi7 by striking using the credit 
card issued by the card issuer and      
inserting using the credit card issued  
by the card issuer or the buy now1 pay  
later loan provided by the creditor2 and
  7,c7 in subsection 7b7-- 7i7 by       
striking asserted by the cardholder and 
inserting asserted by the cardholder or 
consumer2  7ii7 by striking at the time 
the cardholder first notifies the card  
issuer or the person honoring the credit
 card of such claim or defense and      
inserting at the time the cardholder or 
consumer first notifies the card issuer 
or creditor or the person honoring the  
credit card or buy now1 pay later loan  
of such claim or defense2 and  7iii7 by 
striking the cardholder's account and   
inserting the cardholder's account or   

the consumer's buy now1 pay later loan  
account2  7#d7 in section #afa 7#ae     
,u4,s4,c4 #afff7-- 7,a7 in subsection   
7a71 in the matter preceding paragraph  
7#a71 by striking in connection with an 
extension of consumer credit1 and       
inserting in connection with an         
extension of consumer credit1 including 
a buy now1 pay later loan12 and  7,b7 in
 subsection 7d71 by striking an open end
 consumer credit plan and inserting an  
open end consumer credit plan or a buy  
now1 pay later loan2 and  7#e7 in       
section #aga7;a7 7#ae ,u4,s4,c4         
#afff;i-#a71 by striking ,in the case of
 any credit card account under an open  
end consumer credit plan and inserting  
,in the case of any credit card account 
under an open end consumer credit plan  
or buy now1 pay later loan4  7b7        
,rulemaking ,not later than #a year     
after the date of enactment of this     
,act1 the ,consumer ,financial          
,protection ,bureau shall issue such    
rules as the ,bureau determines         

necessary to carry out the amendments   
made by subsection 7a74  #c4 ,federal   
supervision of buy now1 pay later loan  
lenders ,section #ajbd7;a77#a7 of the   
,consumer ,financial ,protection ,act of
 #bjaj 7#ab ,u4,s4,c4 #eead7;a77#a77 is 
amended-- 7#a7 in subparagraph 7,d71 by 
striking 2 or and inserting a semicolon2
  7#b7 in subparagraph 7,e71 by striking
 the period at the end and inserting 2  
or2 and  7#c7 by adding at the end3     
7,f7 offers or provides to a consumer a 
buy now1 pay later loan1 as defined in  
section #ajc of the ,truth in ,lending  
,act 7#ae ,u4,s4,c4 #afjb74  4