UK cost-of-living crisis prompts warning to 'buy now, pay later' lenders

UK cost-of-living crisis prompts warning to 'buy now, pay later' lenders

News, analysis and comment from the Financial Times, the worldʼs leading global business publication

‘Buy now pay later’ adverts could be misleading consumers, watchdog warns

The ads could fail to warn people of the risks of taking on debt they cannot afford to repay, the FCA said.

Buy now, pay later firms in UK warned over influencer ads on social media

Financial Conduct Authority will take action if posts do not inform consumers of debt risksThe city watchdog has informed buy now, pay later firms such as Klarna and Clearpay that it has seen online ads and posts by social media influencers that break rules by not warning of risks such as taking on unaffordable debt.The Financial Conduct Authority (FCA) has written to companies in the multibillion-pound buy now, pay later (BNPL) sector promising…

Buy now, pay later: Warning over influencers' adverts on social media

Financial regulator says some adverts posted by influencers fail to highlight risks of borrowing.

UK cost-of-living crisis prompts warning to 'buy now, pay later' lenders

By Huw Jones LONDON - Britain's financial watchdog has told firms offering 'buy now, pay later' loans to spell out the cost of late repayments to customers as the UK cost-of-living crisis intensifies. Companies like Klarna led the way in offering on-the-spot, interest-free, short-term loans to customers which spread repayments for buying goods like clothes over a few weeks. Lenders

FCA warns Buy Now Pay Later firms about misleading adverts

Read here: https://www.fca.org.uk/news/press-releases/fca-warns-buy-now-pay-later-firms-about-misleading-adverts