US EditionNew buy now, pay later rules aim to protect shoppers
- The UK government will introduce new legislation on Monday to regulate buy now, pay later services and protect shoppers from debt traps.
- This action follows concerns that BNPL has operated as a 'wild west', exposing consumers to unaffordable debt and financial hardship due to insufficient regulation.
- New regulations will mandate early affordability assessments, ensure quicker refund processes, and grant the ability to escalate complaints to the Financial Ombudsman, bringing BNPL practices in line with other credit products.
- Around 10 million individuals use BNPL services, and the Treasury’s economic secretary highlighted that the new regulations will provide the industry with the confidence needed to expand, invest, and generate employment, while also offering greater consumer protections.
- The legislation has been welcomed by Citizens Advice and BNPL companies, marking a crucial step toward stronger consumer protections and a more sustainable BNPL market future.
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Shoppers using Klarna could now face stricter credit checks
New regulation has been announced for ‘Buy-now Pay-later’ firms (Picture: PA) Listen to article Listen to article Your browser does not support the audio element. The government has announced plans to regulate the ‘Wild West’ of payment plans offered by firms like Klarna and Clearpay. Such ‘Buy-Now Pay-Later’ (BNPL) firms only became available in the last 10 years, and it has taken until now for the laws a…
·London, United Kingdom
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New laws affecting UK shoppers using 'buy now, pay later' on the way - Manchester Evening News
The new legislation will impose new standards on BNPL firms amid concerns a lack of regulation has led some of the 10 million people who use it to take on too much debt
·Manchester, United Kingdom
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Leaning Left4Leaning Right2Center6Last UpdatedBias Distribution50% Center
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R 17%
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