NY A06757

Requires buy-now-pay-later (BNPL) lenders to obtain a license from the New York Superintendent of Financial Services before operating, with exemptions for banks, credit unions, and other federally-regulated financial institutions

Prohibits BNPL lenders from charging any interest, late fees, penalties, or other fees to consumers for installment loans made at the point of purchase (excluding motor vehicles)

Mandates consumer protections including clear disclosure of loan terms, ability-to-repay assessments before extending credit, fair refund/dispute resolution procedures, and consumer consent for data collection and use

Bars BNPL lenders from reporting consumer data to credit reporting agencies and renders any loans made by unlicensed entities void and uncollectible

Establishes penalties including misdemeanor charges with fines up to $500 and/or imprisonment up to six months for violations, and grants the superintendent authority to revoke or suspend licenses for non-compliance