New York Floats Sweeping Rules for ‘Buy Now, Pay Later’ Industry

New York’s Department of Financial Services would receive sweeping powers over “Buy Now, Pay Later” lenders under a budget proposal pushed by Gov. Kathy Hochul (D) that would require them to get state licenses.

New York would be the second state to implement comprehensive regulations on such businesses, after California, if Hochul’s proposal gets approved in the budget, which is due April 1.

Lenders would have to assess the ability of potential borrowers to repay loans and provide them with details about loan terms. Customers could only receive loans from companies that allow the department to examine their inner workings ...