I 

118TH CONGRESS 

2D SESSION H. R. 8628 

To prohibit the Director of the Bureau of Consumer Financial Protection 

from issuing new rules or guidance relating to buy now pay later services 

until the Bureau and the Comptroller General of the United States 

each conduct a study on such services, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 5, 2024 

Mr. DONALDS introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To prohibit the Director of the Bureau of Consumer Financial Protection from issuing new rules or guidance relating to buy now pay later services until the Bureau and 

the Comptroller General of the United States each conduct a study on such services, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Examining Consumer 

5 Choice in Digital Payments Act’’. 


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1 SEC. 2. PROHIBITION ON ISSUING NEW RULES OR GUID2 ANCE RELATING TO BUY NOW PAY LATER 

3 SERVICES UNTIL COMPLETION OF STUDIES. 

4 (a) IN GENERAL.—The Director of the Bureau of 

5 Consumer Financial Protection may not issue any new 

6 rule or guidance relating to buy now pay later services 

7 until— 

8 (1) after the reports required under subsections 

9 (b)(2) and (c)(2) are submitted to the relevant con10 gressional committees; and 

11 (2) the Bureau has considered the results of 

12 such reports with respect to such new rule or guid13 ance. 

14 (b) BUREAU STUDY AND REPORT.— 

15 (1) IN GENERAL.—The Director of the Bureau 

16 of Consumer Financial Protection shall conduct a 

17 study on buy now pay later services to determine— 

18 (A) the nature, size, and role of the enti19 ties offering buy now pay later services; 

20 (B) the market share held by the primary 

21 nonbank firms and financial institutions offer22 ing buy now pay later services; 

23 (C) the demographics of consumers most 

24 likely to utilize buy now pay later services and 

25 for what purpose; 


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1 (D) the disclosures provided to consumers 

2 regarding buy now pay later services, including 

3 the accessibility and readability of such disclo4 sures; 

5 (E) the benefits of buy now pay later serv6 ices, including— 

7 (i) the flexibility of payment options; 

8 (ii) the potential for increased pur9 chasing power; and 

10 (iii) competitive product offerings; 

11 (F) the risks of buy now pay later services, 

12 including— 

13 (i) potential for delinquencies and pro14 longed debt; 

15 (ii) the ability of consumer reporting 

16 agencies to accurately score buy now pay 

17 later transactions; and 

18 (iii) any unintended consequences for 

19 reporting data on such services to con20 sumer reporting agencies; 

21 (G) the prevalence of partnerships between 

22 entities offering buy now pay later services and 

23 traditional financial institutions and e-com24 merce platforms; and 


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1 (H) the potential for fraud in buy now pay 

2 later services. 

3 (2) REPORT.—Not later than 1 year after the 

4 date of enactment of this Act, the Director of the 

5 Bureau of Consumer Financial Protection shall sub6 mit to the relevant congressional committees a re7 port that includes the results of the study required 

8 by paragraph (1). 

9 (c) GAO STUDY AND REPORT.—The Comptroller 

10 General of the United States shall— 

11 (1) conduct a study on buy now pay later serv12 ices— 

13 (A) to determine the information specified 

14 in subparagraphs (A) through (H) of subsection 

15 (b)(1); and 

16 (B) that compares the specific features, 

17 benefits, and risks of using such services to the 

18 use of other products, including— 

19 (i) overall debt accumulation; 

20 (ii) the average interest rate charged 

21 to consumers; 

22 (iii) the range of interest rates 

23 charged to consumers; 

24 (iv) the amount and type of fees 

25 charged to consumers annually; 


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1 (v) the clarity of legal disclosures as2 sociated with such use; and 

3 (vi) consumer understanding of pay4 ment cycles and due dates; and 

5 (2) not later than 1 year after the date of the 

6 enactment of this Act, submit to the relevant con7 gressional committees a report that includes the re8 sults of the study required by paragraph (1). 

9 (d) WITHDRAWAL OF INTERPRETIVE RULE.—The 

10 Director of the Bureau of Consumer Financial Protection 

11 shall withdrawn the interpretive rule titled ‘‘Truth in 

12 Lending (Regulation Z); Use of Digital User Accounts to 

13 Access Buy Now, Pay Later Loans’’ (May 22, 2024), and 

14 such interpretive rule shall have no force or effect. 

15 (e) DEFINITIONS.—In this section: 

16 (1) BUY NOW PAY LATER SERVICES.—The term 

17 ‘‘buy now pay later services’’ means an alternative 

18 payment method that allows consumers to pay for 

19 purchases in up to 4 installments. 

20 (2) RELEVANT CONGRESSIONAL COMMIT21 TEES.—The term ‘‘relevant congressional commit22 tees’’ means— 

23 (A) the Committee on Financial Services 

24 of the House of Representatives; and 


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1 (B) the Committee on Banking, Housing, 

2 and Urban Affairs of the Senate. 

Æ 


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