The UK Government has opened a consultation on draft legislation aimed at regulating Buy-Now, Pay-Later (BNPL) products, a popular payment method that allows consumers to split payments over time. The new rules are designed to protect consumers while ensuring that businesses can continue to innovate in this space. The Financial Conduct Authority (FCA) will oversee the implementation of these regulations, which aim to provide clear information to consumers, help them avoid unaffordable borrowing, and ensure they have strong rights in case of disputes. The consultation seeks feedback on various aspects, including disclosure requirements and the scope of regulation, which will include third-party lenders but exempt certain agreements facilitated by employers or social landlords. The deadline for comments is set for 29 November 2024. This move follows previous calls for regulation in the BNPL sector, reflecting a growing recognition of the need for consumer protection in financial services.
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