On July 31, NYDFS issued a Request For Information (RFI) seeking responses by August 29 from entities whose activities may be covered by the Buy-Now-Pay-Later (BNPL) Act, as well as from any other interested parties. NYDFS is seeking to understand the business models of entities offering BNPL products, related fee structures, underwriting processes, and how fee charges and interest limits may impact such business models.
Under the state’s BNPL Act, Buy-Now-Pay-Later loans are defined as “closed-end credit,” provided to a consumer in connection with the purchase of goods or services, apart from motor vehicles. A BNPL loan does not include credit when the creditor is the seller, unless credit is offered pursuant to an agreement whereby, at the consumer’s request, the creditor purchases a specific good (or service) and resells it to the consumer on closed-end credit. Examples of such loans include “pay-in-four” products. The BNPL Act applies to both lenders who extend covered credit directly to consumers and operators of platforms or systems that enable third parties to offer BNPL loans to consumers. NYDFS intended to anonymize and use the data from RFI responses to aid in drafting and implementing regulations under the BNPL Act.
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