SEC. 2. PROHIBITION ON ISSUING NEW RULES OR GUID-
ANCE RELATING TO BUY NOW PAY LATER 
SERVICES UNTIL COMPLETION OF STUDIES. 
(a) IN GENERAL.—The Director of the Bureau of 
Consumer Financial Protection may not issue any new 
rule or guidance relating to buy now pay later services 
until— 
(1) after the reports required under subsections 
(b)(2) and (c)(2) are submitted to the relevant con-
gressional committees; and 
(2) the Bureau has considered the results of 
such reports with respect to such new rule or guid-
ance. 
(b) BUREAU STUDY AND REPORT.— 
(1) IN GENERAL.—The Director of the Bureau 
of Consumer Financial Protection shall conduct a 
study on buy now pay later services to determine— 
(A) the nature, size, and role of the enti-
ties offering buy now pay later services; 
(B) the market share held by the primary 
nonbank firms and financial institutions offer-
ing buy now pay later services; 
(C) the demographics of consumers most 
likely to utilize buy now pay later services and 
for what purpose; 
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(D) the disclosures provided to consumers 
regarding buy now pay later services, including 
the accessibility and readability of such disclo-
sures; 
(E) the benefits of buy now pay later serv-
ices, including— 
(i) the flexibility of payment options; 
(ii) the potential for increased pur-
chasing power; and 
(iii) competitive product offerings; 
(F) the risks of buy now pay later services, 
including— 
(i) potential for delinquencies and pro-
longed debt; 
(ii) the ability of consumer reporting 
agencies to accurately score buy now pay 
later transactions; and 
(iii) any unintended consequences for 
reporting data on such services to con-
sumer reporting agencies; 
(G) the prevalence of partnerships between 
entities offering buy now pay later services and 
traditional financial institutions and e-com-
merce platforms; and 
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(H) the potential for fraud in buy now pay 
later services. 
(2) REPORT.—Not later than 1 year after the 
date of enactment of this Act, the Director of the 
Bureau of Consumer Financial Protection shall sub-
mit to the relevant congressional committees a re-
port that includes the results of the study required 
by paragraph (1). 
(c) GAO STUDY
AND REPORT.—The Comptroller 
General of the United States shall— 
(1) conduct a study on buy now pay later serv-
ices— 
(A) to determine the information specified 
in subparagraphs (A) through (H) of subsection 
(b)(1); and 
(B) that compares the specific features, 
benefits, and risks of using such services to the 
use of other products, including— 
(i) overall debt accumulation; 
(ii) the average interest rate charged 
to consumers; 
(iii) the range of interest rates 
charged to consumers; 
(iv) the amount and type of fees 
charged to consumers annually; 
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(v) the clarity of legal disclosures as-
sociated with such use; and 
(vi) consumer understanding of pay-
ment cycles and due dates; and 
(2) not later than 1 year after the date of the 
enactment of this Act, submit to the relevant con-
gressional committees a report that includes the re-
sults of the study required by paragraph (1). 
(d) WITHDRAWAL
OF INTERPRETIVE RULE.—The 
Director of the Bureau of Consumer Financial Protection 
shall withdrawn the interpretive rule titled ‘‘Truth in 
Lending (Regulation Z); Use of Digital User Accounts to 
Access Buy Now, Pay Later Loans’’ (May 22, 2024), and 
such interpretive rule shall have no force or effect. 
(e) DEFINITIONS.—In this section: 
(1) BUY NOW PAY LATER SERVICES.—The term 
‘‘buy now pay later services’’ means an alternative 
payment method that allows consumers to pay for 
purchases in up to 4 installments. 
(2) 
RELEVANT
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘relevant congressional commit-
tees’’ means— 
(A) the Committee on Financial Services 
of the House of Representatives; and 
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(B) the Committee on Banking, Housing, 
and Urban Affairs of the Senate. 
Æ 
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