Consumer Financial Protection Accountability and Reform Act of 2026

(a) In general. The Comptroller General of the United States shall—

(1) conduct a study on buy now pay later services, including—

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

(B) the market share held by the primary nonbank firms and financial institutions offering buy now pay later services;

(C) the disclosures provided to consumers regarding buy now pay later services, including the accessibility and readability of such disclosures;

(D) the benefits of buy now pay later services, including—

(i) the flexibility of payment options;

(ii) the potential for increased purchasing power; and

(iii) competitive product offerings;

(E) the risks of buy now pay later services, including—

(i) potential for delinquencies and prolonged 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 consumer reporting agencies;

(F) the prevalence of partnerships between entities offering buy now pay later services and traditional financial institutions and e-commerce platforms;

(G) the potential for fraud in buy now pay later services;

(H) comparing 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;

(v) the availability and clarity of legal disclosures associated with such use;

(vi) consumer understanding of payment cycles and due dates; and

(vii) delinquency and default rates; and

(I) data regarding the prevalence and rate of on-time repayments by consumers using buy now pay later services; and

(2) not later than 1 year after the date of the enactment of this Act, submit to the relevant congressional committees a report that includes the results of the study required by paragraph (1).

(b) Definitions. In this section:

(1) Buy now pay later service

(A) In general. The term buy now pay later service means a service offered to a consumer at the point of sale in connection with a transaction for the purchase of goods or services that—

(i) allows the consumer to pay for such goods or services over a period of time;

(ii) provides for repayment in a specified number of substantially equal periodic installments; and

(iii) does not impose interest or a finance charge on the consumer in connection with such transaction.

(B) Exclusion. The term buy now pay later service does not include—

(i) a loan or other extension of credit that is not made at the point of sale in connection with a specific transaction for the purchase of goods or services; or

(ii) financing secured by the goods purchased or leased in the transaction.

(2) Relevant congressional committees. The term relevant congressional committees means—

(A) the Committee on Financial Services of the House of Representatives; and

(B) the Committee on Banking, Housing, and Urban Affairs of the Senate.