# What This Bill Does

This bill puts the brakes on new government rules about "buy now pay later" services—those payment plans that let you split purchases into smaller installments, usually four payments with no interest. Right now, the Consumer Financial Protection Bureau (a federal agency that protects people from unfair financial practices) was moving forward with new regulations for these services. This bill stops that process and requires two separate studies to be completed first before any new rules can be issued.

The bill requires the Consumer Financial Protection Bureau and the Government Accountability Office (Congress's independent watchdog agency) to each spend a year studying buy now pay later services. They need to look at who's using these services and why, what companies are offering them, what benefits consumers get, and what risks exist—like whether people end up in debt spirals or if there's potential for fraud. The studies also need to compare these services to credit cards and other borrowing options, looking at things like interest rates, fees, and whether people actually understand what they're signing up for. Once both studies are completed and submitted to Congress, the Consumer Financial Protection Bureau can then consider the findings before creating any new rules.

The bill also immediately cancels a rule the Consumer Financial Protection Bureau had just released in May 2024 about how buy now pay later services should work. This means that rule is wiped away and has no legal effect going forward.

**Who this affects:** Consumers using buy now pay later services like Affirm, Klarna, or PayPal's installment plans; the companies offering these services; and potentially credit card companies and traditional lenders who compete with these newer payment options. The practical impact depends on what the studies find and what rules eventually get written—consumers might see more regulation and consumer protections, or they might see fewer restrictions on how these services operate.