Examining Consumer Choice in Digital Payments Act

[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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