N.Y. Banking Law § 745: Interest and other charges

* § 745. Interest and other charges. 1. No buy-now-pay-later lender

shall: (a) charge interest unless the rate of interest to be charged is

allowable pursuant to its license or authorization; (b) charge interest

unless the rate of interest to be charged is clearly disclosed and

agreed to by the consumer; or (c) directly or indirectly charge,

contract for, or receive any interest, discount, or consideration upon

the loan, use, forbearance of money, goods, or things, or inaction, or

upon the loan, use, or sale of credit greater than the maximum set by

the superintendent pursuant to this section, but in no case greater than

the rate permitted by section 5-501 of the general obligations law.

2. The superintendent shall establish a maximum cumulative amount of

all charges and fees that a buy-now-pay-later lender can charge a

consumer in connection with each category of buy-now-pay-later loans.

The superintendent shall also establish a maximum amount or percentage

for total specific charge or fee in connection with origination, late

payment, default or any other violation of the buy-now-pay-later loan

agreement, that a buy-now-pay-later lender can charge a consumer for

each category of buy-now-pay-later loans. Any such fee or charge shall

not be collected more than once for a single such late payment, default,

or other violation of the buy-now-pay-later loan agreement.

3. The superintendent shall promulgate rules and regulations regarding

the manner of charging interest and fees as prescribed as in this

section.

* NB Effective upon the one hundred eightieth day after the

promulgation of rules and/or regulations by the department of financial

services to effectuate certain provisions (see Ch. 58 of 2025, Part Y, §

13)