* § 746. Consumer protections. 1. A buy-now-pay-later lender shall
disclose or cause to be disclosed to consumers the terms of
buy-now-pay-later loans, including, without limitation, the cost, such
as interest and fees, repayment schedule, the means by which a consumer
may dispute billing practices, whether the transaction will or will not
be reported to a credit reporting agency, and other material conditions,
in a clear and conspicuous manner. Disclosures shall comply with
applicable federal regulations, including but not limited to regulation
Z of title I of the Consumer Credit Protection Act.

2. Subject to regulations to be promulgated by the superintendent, a
buy-now-pay-later lender shall, before providing or causing to be
provided a buy-now-pay-later loan to a consumer, perform, or cause to be
performed, reasonable risk-based underwriting. A buy-now-pay-later
lender shall maintain or cause to be maintained policies and procedures
for underwriting buy-now-pay-later loans, and shall disclose factors
considered in such underwriting process, in a clear and conspicuous
manner to the consumer. No buy-now-pay-later lender shall collect,
evaluate, report, or maintain in the file on a borrower the credit
worthiness, credit standing, or credit capacity of members of the
borrower's social network for purposes of determining the credit
worthiness of the borrower; the average credit worthiness, credit
standing, or credit capacity of members of the borrower's social
network; or any group score that is not the borrower's own credit
worthiness, credit standing, or credit capacity.

3. A buy-now-pay-later lender shall maintain or cause to be maintained
policies and procedures for maintaining accurate data that may be
reported to credit reporting agencies. No buy-now-pay-later lender shall
share consumer data in a manner inconsistent with this article and
regulations promulgated thereto.

4. A buy-now-pay-later lender shall provide or cause to be provided
refunds or credits for goods or services purchased in connection with a
buy-now-pay-later loan, if the consumer requests and is entitled to a
refund, in a manner that is fair, transparent, and not unduly burdensome
to consumers. A buy-now-pay-later lender shall maintain or cause to be
maintained policies and procedures to provide such refunds or credits.
Such policies and procedures shall be fair, transparent, and not unduly
burdensome to the consumer. A buy-now-pay-later lender shall disclose or
cause to be disclosed to consumers, in a clear and conspicuous manner,
the process by which they can obtain refunds or credits for goods or
services they have purchased in connection with a buy-now-pay-later
loan.

5. A buy-now-pay-later lender shall resolve or cause to be resolved
disputes in a manner that is fair and transparent to consumers. A
buy-now-pay-later lender shall create or cause to be created a readily
available and prominently disclosed method for consumers to bring a
dispute to the buy-now-pay-later lender. A buy-now-pay-later lender
shall maintain policies and procedures for handling consumer disputes.
The superintendent may promulgate rules and regulations regarding
treatment of unauthorized use, so that consumers are liable for use of
buy-now-pay-later loans in their name only under circumstances where
such liability would be fair and reasonable. A buy-now-pay-later lender
shall apply to buy-now-pay-later loans the dispute rights and
unauthorized charges requirements that apply to credit cards under the
Truth in Lending Act, 15 U.S.C. § 1643, 1666, 1666a, 1666i, regardless
of whether such law applies to buy-now-pay-later loans or whether the
buy-now-pay-later lender offers a credit card within the scope of such
law.

6. A buy-now-pay-later lender may use, sell, or share the data of a
consumer, other than in connection with the making of a particular
buy-now-pay-later loan to the consumer, only with the consumer's
consent. A buy-now-pay-later lender shall disclose or cause to be
disclosed to a consumer in a clear and conspicuous manner how such
consumer's data may be used, shared, or sold by the buy-now-pay-later
lender before obtaining such consumer's consent and also shall disclose
or cause to be disclosed to such consumer in a clear and conspicuous
manner how such consumer may subsequently withdraw consent to such use,
sharing, or sale. The superintendent, in their discretion, may by
regulation prohibit certain uses of consumer data. A buy-now-pay-later
lender shall maintain policies and procedures regarding its use, sale,
and sharing of consumers' data. Nothing in this subdivision shall
preclude a buy-now-pay-later lender from using information in accordance
with the Fair Credit Reporting Act or furnishing credit reporting data
to a credit reporting agency.

7. Any buy-now-pay-later loan made by a person not licensed or
authorized under this article, other than an exempt organization, shall
be void, and such person shall have no right to collect or receive any
principal, interest or charge whatsoever.

8. Nothing in this section shall be construed to limit the obligations
of a buy-now-pay-later lender to comply with any other applicable laws
or regulations. Any protections, rights and remedies provided in this
section to a consumer with respect to an agreement with a
buy-now-pay-later lender shall be intended to supplement and not be
exclusive of any protections, rights and remedies otherwise available
pursuant to any other law or regulations.

* NB Effective upon the one hundred eightieth day after the
promulgation of rules and/or regulations by the department of financial
services to effectuate certain provisions (see Ch. 58 of 2025, Part Y, §
13)