Hirschauer backs SB3561 to set rules for buy-now-pay-later lenders in Illinois
Rep. Maura Hirschauer (D-49th) supported SB3561, legislation aiming to regulate buy-now-pay-later lenders in Illinois during the 104th General Assembly on May 31, 2026. The Illinois House unanimously passed the measure 116-0.
The bill text describes the measure as the "BUY-NOW-PAY-LATER ACT."
Below is a summary based on the bill text, with added explanations to help clarify its main points.
The bill establishes the Buy-Now-Pay-Later Loan Regulation Act, requiring lenders offering buy-now-pay-later services in Illinois to obtain annual registration with the Department of Financial and Professional Regulation, pay $5,000 fees for both initial and renewal periods, and disclose key loan terms, APR, all related fees, repayment plans, credit reporting practices, dispute rights, and refund information. It enforces reasonable underwriting standards, mandates accessible dispute and refund procedures, and requires clear postings of registration and complaints information. The secretary's oversight includes investigative, subpoena, and record review powers, authority to issue cease-and-desist orders, levy civil fines up to $10,000 per violation, and seek injunctions. Noncompliance is treated as an unlawful act under the Consumer Fraud and Deceptive Business Practices Act.
The official action for SB3561 was recorded as 'Third Reading - Short Debate - Passed.'
Hirschauer holds a bachelor’s degree from Colby College.
She has served as a Democratic representative of Illinois’s 49th House District since 2021, succeeding former state Rep. Karina Villa.
Bills in Illinois progress through a legislative process with multiple steps, starting with introduction in the House or Senate, moving to committee review, floor debates, and votes in both chambers before advancing to the governor for signature or veto. The General Assembly operates on a two-year cycle and typically considers thousands of bills each session, but only a limited number ultimately become law.