The UK Government has launched a consultation on new regulations for buy now, pay later (BNPL) products, with plans to implement regulatory changes by 2026. The proposed regulations aim to bring BNPL companies under the supervision of the Financial Conduct Authority (FCA) and apply the Consumer Credit Act.
Under the new regulation, BNPL companies will be required to conduct affordability checks before offering loans, provide clear information about loan agreements, and allow consumers access to Section 75 protections and the Financial Ombudsman Service for complaints.
The consultation will close on November 29, and final legislation is expected to be introduced in Parliament in early 2025.
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