NY A09588

Requires all buy-now-pay-later lenders (except exempt organizations like banks) to obtain a license from the superintendent of financial services before operating in New York.

Prohibits buy-now-pay-later lenders from charging any interest, penalties, late fees, discounts, or other charges on loans, and bars them from taking confessions of judgment or making false/misleading advertisements.

Mandates lenders make reasonable ability-to-repay determinations before extending credit and prohibit reporting consumer data to credit reporting agencies.

Requires lenders to provide clear disclosures of loan terms, establish fair refund/credit policies, create accessible dispute resolution methods, and obtain consumer consent before collecting or using personal data.

Establishes superintendent authority to examine licensees, set capital requirements, and impose penalties for violations; makes unlicensed buy-now-pay-later loans void with no right to collect payment; effective one year after enactment.