Skip to content

THOUSANDS OF PRODUCTS | EASY FINANCING

Previous article
Now Reading:
Regulating Buy Now Pay Later: Protecting Consumers in a Debt Crisis

Regulating Buy Now Pay Later: Protecting Consumers in a Debt Crisis

The Buy Now Pay Later (BNPL) scheme has gained immense popularity, with over one-third of adults using it and significant online spending attributed to it. However, this rapid growth has raised alarms about consumer protection, especially amidst the ongoing cost-of-living crisis. Reports indicate a dramatic increase in financial distress linked to BNPL, with Citizens Advice witnessing a doubling of cases in just one year. The lack of regulation means that consumers often do not realize they are incurring debt, as BNPL companies are not mandated to assess affordability or provide clear information. This gap in oversight leaves consumers vulnerable, as they cannot seek assistance from the Financial Ombudsman Service if they struggle to repay. Prominent figures and organizations, including Martin Lewis and Citizens Advice, are advocating for regulatory measures to ensure that BNPL is treated like other lending forms, allowing consumers to benefit from its flexibility while being safeguarded against potential financial pitfalls.

Read the full article here.

Cart

Close

Your cart is currently empty.

Start Shopping

Select options

Close