The UK government is preparing to introduce regulations for the Buy Now, Pay Later (BNPL) sector, following repeated delays and political instability. A spokesperson from the Treasury confirmed that plans will be announced shortly, echoing statements from Tulip Siddiq, the new economic secretary. The push for regulation comes as concerns grow about the rising debt burdens on consumers, particularly younger individuals who often use multiple BNPL providers. A report indicated that over 10% of BNPL customers are in arrears, highlighting the need for consumer protection. The previous Conservative government faced challenges in advancing BNPL legislation, but the new Labour administration is committed to collaborating with stakeholders to create a regulatory framework. Industry leaders have expressed support for regulation that prioritizes consumer protection while ensuring innovation in the credit space. The Financial Conduct Authority is expected to play a crucial role in overseeing the sector within the next two years.
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