Greater protection for BNPL customers proposed

BUY now, pay later providers will have to check that people can afford to repay their loans and offer support if they get into financial difficulty under a consultation put forward by the Financial Conduct Authority (ECA).

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Borrowers will also be able to complain to the Financial Ombudsman Service if something goes wrong. ‘The rules, giving consumers more transparency over what this type of borrowing involves, would take effect when buy now, pay later (BNPL) comes under the FCA’s remit next year.

‘The new oversight by the FCA would mean that BNPL borrowers will have key protections that already exist for other types of lending.