Buy Now Pay Later Lenders to Face Same Rules as Banks

Contributing sentiments towards policy:

65% : The long road to regulation reflects both the complexity of bringing a new form of credit into the regulatory framework and the lobbying efforts of BNPL providers who have benefited from operating in a relatively unrestricted environment.
59% : Why Regulation Was Needed The case for regulating Buy Now Pay Later services has been building for several years as these products have grown exponentially in popularity.
59% : However, recent data from the Financial Conduct Authority revealing that one in ten Britons have no cash savings at all underscores why proper regulation is essential.
55% : What the Changes Mean for Consumers Under the new regulations, BNPL lenders will be required to check that consumers are able to afford repayments before offering credit, and they must provide clear information about the terms of the product.
55% : The convenience of splitting payments shouldn't come at the cost of your financial wellbeing, and the new regulatory framework is designed to ensure that the growing popularity of Buy Now Pay Later contributes to positive consumer outcomes rather than creating new pathways into problem debt for people who can least afford it.
53% : The shift towards regulation also represents fresh opportunities for credit reference agencies, as BNPL firms will need to turn to them for verification and affordability checks in the same way that traditional lenders do.
53% : The fact that these services are typically interest-free doesn't mean they're consequence-free, and the introduction of regulation acknowledges this reality.
51% : The new regulations, which form part of reforms to the Consumer Credit Act, will require BNPL lenders to carry out affordability assessments to ensure people do not take on more debt than they can realistically manage.
41% : The regulations will also give consumers fairer access to refunds when things go wrong with purchases, and the right to complain to the Financial Ombudsman Service if they have disputes with BNPL providers that can't be resolved directly.

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