Illinois lawmakers passed SB3561, a bill requiring BNPL lenders to register with the state, disclose terms, and weigh a borrower's ability to repay before extending Pay in 4 and other point-of-sale installment loans, with merchants and banks exempted. The bill now heads to Governor JB Pritzker, and its sponsor, State Senator Michael Hastings, frames it as a curb on predatory lending, comparing the services to a loan shark with a new paint job. Consumer advocates at the Woodstock Institute argue the opposite, warning that it strips BNPL lenders out of the state's broader installment-loan law and the lending database used to track predatory loans in predominantly Black Chicago neighborhoods. They also say its 120-day cap lets lenders evade the rules by writing loans repayable in 121 days, a loophole an industry attorney disputes.
