[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8628 Introduced in House (IH)]
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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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Examining Consumer Choice in Digital
Payments Act''.
SEC. 2. PROHIBITION ON ISSUING NEW RULES OR GUIDANCE 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 congressional committees;
and
(2) the Bureau has considered the results of such reports
with respect to such new rule or guidance.
(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 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 demographics of consumers most likely to
utilize buy now pay later services and for what
purpose;
(D) the disclosures provided to consumers regarding
buy now pay later services, including the accessibility
and readability of such disclosures;
(E) 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;
(F) 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;
(G) the prevalence of partnerships between entities
offering buy now pay later services and traditional
financial institutions and e-commerce platforms; and
(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 submit to the relevant congressional
committees a report 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 services--
(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;
(v) the clarity of legal disclosures
associated with such use; and
(vi) consumer understanding of payment
cycles and due dates; 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).
(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 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.
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