Illinois Governor JB Pritzker signed the Buy-Now-Pay-Later Loan Consumer Protection Act, requiring BNPL providers to register with the state, disclose what a loan costs, and check whether a borrower can afford to repay. It also mandates dispute-resolution and refund processes, takes effect immediately, and gives providers until January 1, 2028 to comply. Illinois's law mirrors a BNPL measure New York passed last year, part of a growing wave of state-level oversight of a sector lawmakers have likened to the Wild West for its hidden fees. Pritzker signed it alongside a Junk Fee Ban Act targeting undisclosed charges like resort and delivery fees, days after Illinois enacted a Digital Asset Tax Act levying a 0.2% tax on crypto transfers.
