The Roundup: States Increasing Consumer Protection Efforts, UK to Regulate BNPL, and Fair Lending and AI

Welcome to the PerformLine Regulatory Compliance Roundup, home of the latest news, articles, and reports from our industry, curated for you. Let’s get into it.

In this edition: NY enacts sweeping consumer protection measures in 2026 budget, UK to regulate BNPL lenders in legal overhaul, previewing consumer financial enforcement in California, FTC warns ticket reseller it must comply with agency’s new rule on unfair and deceptive fees, fair lending and AI with Upstart’s CCO, 3 key areas to improve risk and compliance management at banks and fintechs, and the “compliance hat” mindset for marketers with Adro’s Director of Marketing.

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New York Enacts Sweeping Consumer Protection Measures In 2026 Budget

New York has enacted sweeping consumer protection reforms as part of its FY2026 budget. Subscription-based businesses must now ensure cancellation processes are as straightforward as sign-ups, with clear disclosures in all languages used in marketing. Large online retailers are required to prominently display return and refund policies, offering at least 30-day refunds or store credit. Buy now, pay later (BNPL) providers must obtain licenses, adhere to disclosure and data privacy standards, and are subject to oversight by the New York Department of Financial Services. Additionally, businesses using personalized algorithmic pricing must disclose when prices are set using consumer data, marking a first-in-the-nation move towards transparency in dynamic pricing practices.

UK to Regulate BNPL Lenders in Legal Overhaul

The UK government has announced plans to regulate BNPL services starting in 2026. These regulations will require BNPL providers to conduct affordability checks, clearly disclose fees and credit implications, and offer faster refunds. The Financial Conduct Authority will oversee these firms, aligning them with traditional credit products under the Consumer Credit Act. Consumers will also gain the right to escalate complaints to the Financial Ombudsman. While the sector has operated largely unregulated, leading BNPL companies have expressed support for these changes, viewing them as a means to enhance consumer protection and industry stability.

Significant Stat: 75%: So far in 2025, state regulators have accounted for 75% of all consumer protection-related enforcement actions, imposing $441M in monetary penalties. Read more

Previewing Consumer Financial Enforcement in California

California is poised to intensify its consumer financial enforcement efforts. The state’s Department of Financial Protection and Innovation (DFPI) and Department of Justice (DOJ) are expected to proactively address areas such as cryptocurrency, small business financing, and earned wage access. Leveraging laws like the California Consumer Financial Protection Law and the Unfair Competition Law, these agencies aim to fill the regulatory void left by federal retrenchment, ensuring continued consumer protection within the state.

FTC Warns Ticket Reseller It Must Comply with Agency’s New Rule on Unfair and Deceptive Fees

As the NFL prepares to unveil its 2025 season schedule, the Federal Trade Commission (FTC) has issued a warning to a leading ticket resale platform for allegedly misrepresenting ticket prices by excluding mandatory fees such as service and fulfillment charges. This action violates the FTC’s new Rule on Unfair or Deceptive Fees, effective May 12, 2025, which mandates that businesses clearly disclose the total price of live-event tickets upfront, excluding only taxes, shipping, and optional add-ons. The FTC emphasized that each instance of non-compliance could incur civil penalties up to $53,088, urging the company to promptly align its pricing practices with the new regulations to ensure transparency for consumers.

Fair Lending and AI with Upstart’s Chief Compliance Officer

In Episode 78 of Upstart’s Leaders in Lending podcast, Annie Delgado, Chief Compliance Officer at Upstart, explores the broader implications of using artificial intelligence in financial services. She discusses how AI can improve credit access by offering more accurate risk assessments, particularly for consumers underserved by traditional credit models. She highlights the need to proactively address bias—whether in human decision-making or algorithmic systems—and emphasizes the importance of working closely with regulators to ensure transparency and fairness. Her insights reflect a commitment to using technology responsibly to promote financial inclusion and maintain consumer trust.

3 Key Areas to Improve Risk and Compliance Management at Banks and Fintechs

In response to evolving regulatory landscapes, banks and fintechs are advised to enhance risk and compliance management by focusing on three key areas: technology, teams, and training. Implementing advanced technologies like AI and machine learning can improve real-time monitoring and risk assessment, while robust governance structures ensure alignment with regulatory requirements. Building teams with expertise in regulatory compliance and technical skills is crucial for bridging the gap between tech adoption and adherence to compliance standards. Moreover, fostering a culture of compliance through clear communication and role-specific training across all departments ensures that compliance is a shared responsibility, promoting proactive issue resolution and safeguarding consumer interests. 

The “Compliance Hat” Mindset for Marketers with Kat Wong, Director of Marketing at Adro

In this episode of the COMPLY Podcast, Kat Wong, Director of Marketing at Adro, shares how she bridges the gap between marketing and compliance in a fintech helping international students and workers access U.S. banking products. She discusses how marketers can play a critical role in translating complex regulatory language into clear, consumer-friendly messaging, emphasizing that compliance should be a shared responsibility across teams. Wong offers practical advice on building strong relationships with compliance teams, integrating compliance thinking into daily workflows, and using collaborative tools to streamline approvals.