What's New? BNPL Loan Protections in NY

Governor Kathy Hochul announced, on February 23, 2026, proposed regulations to establish a comprehensive licensing and supervision framework for all Buy Now, Pay Later (BNPL) providers operating in New York. These rules are specifically designed to prevent consumer debt spirals by prohibiting excessive junk fees and placing strict limits on late payment penalties. The regulations also mandate transparent loan disclosures regarding credit reporting, establish standards for the timely resolution of disputes, and provide strong protections for consumer data. Following a public comment period, this new oversight framework is scheduled to take effect 180 days after its official adoption.

For more information on the proposed rule, see our section in the Gold Book.