Creates the Buy-Now-Pay-Later Loan Regulation Act. Provides that it is unlawful for a person to act as a buy-now-pay-later lender unless the person registers with the Division of Financial Institutions of the Department of Financial and Professional Regulation. Sets forth requirements for registration; duties and powers of the Secretary of Financial and Professional Regulation; and administrative procedures. Provides that a buy-now-pay-lender shall provide specified disclosures to recipients. Provides that a violation of the Act constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change.
Senate Committee Amendment No. 1: Replaces everything after the enacting clause. Creates the Buy-Now-Pay-Later Loan Consumer Protection Act. Provides that no person shall engage in the business of providing buy-now-pay-later loans without licensure under the Act. Provides that the Division of Financial Institutions of the Department of Financial and Professional Regulation shall administer the Act. Sets forth requirements for initial licensure; renewals; revocations; grounds for discipline; and administrative procedures. Provides that any lender that offers a buy-now-pay-later loan to a consumer in this State shall comply with specified consumer protection provisions. Provides that a violation of the Act constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change. Effective immediately.
Senate Floor Amendment No. 3: Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with the following changes. Provides that an owner, officer, or employee of a person required to be licensed under the Act is not required to be licensed to engage in activities conducted by the licensee under the Act. Removes a provision that any person who engages in the business regulated by the Act without the license required by the Act shall be guilty of a Class 4 felony. Provides that the Act does not apply to a merchant or merchant platform that makes a buy-now-pay-later loan available to a consumer through an agreement with a licensed buy-now-pay-later lender, if the merchant or merchant platform does not originate, underwrite, service, or hold an interest in any buy-now-pay-later loan. Provides that the Act also does not apply to a person who buys, acquires, or holds a partial interest in a loan as a passive investor, but does not otherwise originate, underwrite, or service the loan or control the servicing of the loan. Provides that a person that (i) was providing buy-now-pay-later loans in the State before January 1, 2028 and (ii) submits an application for a license on or before January 1, 2028 shall be deemed a provisional licensee authorized to continue operating under the Act until the Department of Financial and Professional Regulation acts on the application. Provides that any loan made under and in compliance with the Act is not required to comply with the Consumer Installment Loan Act or the Payday Loan Reform Act. Removes provisions concerning action for damages. Makes changes to provisions concerning definitions; applicability; examinations and prohibited activities; suspension, revocation of licenses, and fines and other discipline; underwriting; and consumer protections. Effective immediately.
Senate Floor Amendment No. 4: Provides that a lender shall, before providing or causing to be provided a loan to a consumer, take into consideration the financial ability of the borrower to repay the loan in the time and manner provided in the loan contract. Requires lenders to comply with specified federal laws (rather than maintain policies and procedures for maintaining accurate data that may be reported to credit reporting agencies). Removes a provision that allows the Department of Financial and Professional Regulation to limit or prohibit the number of loans any consumer may have outstanding.

Statutes affected:
Introduced: 815 ILCS 505/2
Engrossed: 815 ILCS 505/2
Enrolled: 815 ILCS 505/2