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SB3561 - 104th General Assembly
BUY-NOW-PAY-LATER ACT
Last Action
Senate Sponsors
Sen. Michael E. Hastings - Christopher Belt - Suzy Glowiak Hilton, Michael W. Halpin, Cristina Castro, Mattie Hunter, Doris Turner, Graciela Guzmán, Adriane Johnson, Steve Stadelman and Meg Loughran CappelHouse Sponsors
(Rep. Robert "Bob" Rita)Statutes Amended In Order of Appearance
New Act
815 ILCS 505/2MMMM new
Synopsis As Introduced
Creates the Buy-Now-Pay-Later Loan Regulation Act. Provides that it is unlawful for a person to act as a buy-now-pay-later lender unless the person registers with the Division of Financial Institutions of the Department of Financial and Professional Regulation. Sets forth requirements for registration; duties and powers of the Secretary of Financial and Professional Regulation; and administrative procedures. Provides that a buy-now-pay-lender shall provide specified disclosures to recipients. Provides that a violation of the Act constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change.
Senate Committee Amendment No. 1
Replaces everything after the enacting clause. Creates the Buy-Now-Pay-Later Loan Consumer Protection Act. Provides that no person shall engage in the business of providing buy-now-pay-later loans without licensure under the Act. Provides that the Division of Financial Institutions of the Department of Financial and Professional Regulation shall administer the Act. Sets forth requirements for initial licensure; renewals; revocations; grounds for discipline; and administrative procedures. Provides that any lender that offers a buy-now-pay-later loan to a consumer in this State shall comply with specified consumer protection provisions. Provides that a violation of the Act constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change. Effective immediately.
Senate Floor Amendment No. 3
Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with the following changes. Provides that an owner, officer, or employee of a person required to be licensed under the Act is not required to be licensed to engage in activities conducted by the licensee under the Act. Removes a provision that any person who engages in the business regulated by the Act without the license required by the Act shall be guilty of a Class 4 felony. Provides that the Act does not apply to a merchant or merchant platform that makes a buy-now-pay-later loan available to a consumer through an agreement with a licensed buy-now-pay-later lender, if the merchant or merchant platform does not originate, underwrite, service, or hold an interest in any buy-now-pay-later loan. Provides that the Act also does not apply to a person who buys, acquires, or holds a partial interest in a loan as a passive investor, but does not otherwise originate, underwrite, or service the loan or control the servicing of the loan. Provides that a person that (i) was providing buy-now-pay-later loans in the State before January 1, 2028 and (ii) submits an application for a license on or before January 1, 2028 shall be deemed a provisional licensee authorized to continue operating under the Act until the Department of Financial and Professional Regulation acts on the application. Provides that any loan made under and in compliance with the Act is not required to comply with the Consumer Installment Loan Act or the Payday Loan Reform Act. Removes provisions concerning action for damages. Makes changes to provisions concerning definitions; applicability; examinations and prohibited activities; suspension, revocation of licenses, and fines and other discipline; underwriting; and consumer protections. Effective immediately.
Senate Floor Amendment No. 4
Provides that a lender shall, before providing or causing to be provided a loan to a consumer, take into consideration the financial ability of the borrower to repay the loan in the time and manner provided in the loan contract. Requires lenders to comply with specified federal laws (rather than maintain policies and procedures for maintaining accurate data that may be reported to credit reporting agencies). Removes a provision that allows the Department of Financial and Professional Regulation to limit or prohibit the number of loans any consumer may have outstanding.
Actions
| Date | Chamber | Action |
|---|---|---|
| 2/05/2026 | Senate | Filed with Secretary by Sen. Michael E. Hastings |
| 2/05/2026 | Senate | First Reading |
| 2/05/2026 | Senate | Referred to Assignments |
| 2/17/2026 | Senate | Assigned to Judiciary |
| 3/09/2026 | Senate | Senate Committee Amendment No. 1 Filed with Secretary by Sen. Michael E. Hastings |
| 3/09/2026 | Senate | Senate Committee Amendment No. 1 Referred to Assignments |
| 3/10/2026 | Senate | Senate Committee Amendment No. 1 Assignments Refers to Judiciary |
| 3/11/2026 | Senate | Senate Committee Amendment No. 1 Adopted |
| 3/11/2026 | Senate | Do Pass as Amended Judiciary; 009-000-000 |
| 3/11/2026 | Senate | Placed on Calendar Order of 2nd Reading March 12, 2026 |
| 3/13/2026 | Senate | Added as Co-Sponsor Sen. Michael W. Halpin |
| 3/17/2026 | Senate | Added as Chief Co-Sponsor Sen. Christopher Belt |
| 3/20/2026 | Senate | Added as Chief Co-Sponsor Sen. Suzy Glowiak Hilton |
| 3/24/2026 | Senate | Added as Co-Sponsor Sen. Cristina Castro |
| 3/25/2026 | Senate | Added as Co-Sponsor Sen. Mattie Hunter |
| 3/26/2026 | Senate | Added as Co-Sponsor Sen. Doris Turner |
| 3/27/2026 | Senate | Added as Co-Sponsor Sen. Graciela Guzmán |
| 3/31/2026 | Senate | Added as Co-Sponsor Sen. Adriane Johnson |
| 4/13/2026 | Senate | Senate Floor Amendment No. 2 Filed with Secretary by Sen. Michael E. Hastings |
| 4/13/2026 | Senate | Senate Floor Amendment No. 2 Referred to Assignments |
| 4/14/2026 | Senate | Senate Floor Amendment No. 2 Assignments Refers to Judiciary |
| 4/15/2026 | Senate | Senate Floor Amendment No. 2 Postponed - Judiciary |
| 4/17/2026 | Senate | Rule 2-10 Third Reading Deadline Established As May 8, 2026 |
| 4/28/2026 | Senate | Second Reading |
| 4/28/2026 | Senate | Placed on Calendar Order of 3rd Reading April 29, 2026 |
| 5/07/2026 | Senate | Added as Co-Sponsor Sen. Steve Stadelman |
| 5/08/2026 | Senate | Rule 2-10 Third Reading Deadline Established As May 15, 2026 |
| 5/15/2026 | Senate | Senate Floor Amendment No. 3 Filed with Secretary by Sen. Michael E. Hastings |
| 5/15/2026 | Senate | Senate Floor Amendment No. 3 Referred to Assignments |
| 5/15/2026 | Senate | Rule 3-9(a) / Re-referred to Assignments |
| 5/19/2026 | Senate | Rule 2-10 Committee/3rd Reading Deadline Established As May 22, 2026 |
| 5/19/2026 | Senate | Approved for Consideration Assignments |
| 5/19/2026 | Senate | Placed on Calendar Order of 3rd Reading May 20, 2026 |
| 5/19/2026 | Senate | Senate Floor Amendment No. 3 Assignments Refers to Judiciary |
| 5/20/2026 | Senate | Senate Floor Amendment No. 4 Filed with Secretary by Sen. Michael E. Hastings |
| 5/20/2026 | Senate | Senate Floor Amendment No. 4 Referred to Assignments |
| 5/20/2026 | Senate | Senate Floor Amendment No. 4 Assignments Refers to Judiciary |
| 5/20/2026 | Senate | Senate Floor Amendment No. 2 Postponed - Judiciary |
| 5/20/2026 | Senate | Senate Floor Amendment No. 3 Recommend Do Adopt Judiciary; 008-000-000 |
| 5/20/2026 | Senate | Senate Floor Amendment No. 4 Recommend Do Adopt Judiciary; 008-000-000 |
| 5/21/2026 | Senate | Recalled to Second Reading |
| 5/21/2026 | Senate | Senate Floor Amendment No. 3 Adopted; Hastings |
| 5/21/2026 | Senate | Senate Floor Amendment No. 4 Adopted; Hastings |
| 5/21/2026 | Senate | Placed on Calendar Order of 3rd Reading |
| 5/21/2026 | Senate | Third Reading - Passed; 056-000-000 |
| 5/21/2026 | Senate | Senate Floor Amendment No. 2 Tabled Pursuant to Rule 5-4(a) |
| 5/21/2026 | Senate | Added as Co-Sponsor Sen. Meg Loughran Cappel |
| 5/21/2026 | House | Arrived in House |
| 5/21/2026 | House | Chief House Sponsor Rep. Robert "Bob" Rita |
| 5/21/2026 | House | First Reading |
| 5/21/2026 | House | Referred to Rules Committee |
| 5/21/2026 | House | Assigned to Judiciary - Civil Committee |
| 5/21/2026 | House | Committee/Final Action Deadline Extended-9(b) May 31, 2026 |
| 5/25/2026 | House | Moved to Suspend Rule 21 Rep. Elizabeth "Lisa" Hernandez |
| 5/25/2026 | House | Suspend Rule 21 - Prevailed 066-029-000 |
| 5/27/2026 | House | Do Pass / Short Debate Judiciary - Civil Committee; 019-000-000 |
| 5/27/2026 | House | Placed on Calendar 2nd Reading - Short Debate |
| 5/27/2026 | House | Second Reading - Short Debate |
| 5/27/2026 | House | Held on Calendar Order of Second Reading - Short Debate |
| 5/31/2026 | House | Placed on Calendar Order of 3rd Reading - Short Debate |
| 5/31/2026 | House | Third Reading/Final Action Deadline Extended-9(b) June 2, 2026 |
| 6/01/2026 | House | 3/5 Vote Required |
| 6/01/2026 | House | Third Reading - Short Debate - Passed 116-000-000 |
| 6/01/2026 | Senate | Passed Both Houses |