NAIB Outlines Concerns to the New York Department of Financial Services regarding revised proposed New 3 N.Y.C.R.R. Part 423, Buy-Now-Pay-Later Lenders
On behalf of the National Association of Industrial Bankers (“NAIB”), we thank you for the opportunity to comment on the draft of the proposed regulation implementing the New York BuyNow-Pay-Later Act (the “Proposed Rule”).
NAIB previously outlined concerns to the New York Department of Financial Services (“DFS”) in a comment letter, dated March 5, 2026, regarding the pre-publication version of the Proposed Rule. In that letter, a copy of which is attached hereto as Exhibit A, we identified several substantive and structural issues, including the competitive disparity the rule could create for out-of-state, state-chartered institutions (“out-of-state state banks”); the imposition of regulatory obligations duplicative of existing federal and state frameworks; and adoption of an overbroad and poorly tailored approach to BNPL regulation that creates compliance ambiguities and inconsistencies with federal law.
We acknowledge that the DFS has made certain revisions relating to issues we raised previously, but these revisions do not address – and in some instances compound – the concerns NAIB previously raised. NAIB appreciates the DFS’s consideration of the comments and concerns of our members during this formal New York State Administrative Procedure Act (“SAPA”) comment period.