The Financial conduct authority has secured changes in the contracts of many popular BNPL lenders in the UK.
In Brief:
Buy now, pay later is not yet regulated but the FCA has used the Consumer Rights Act.
It will seek to make contracts and continuous payment authorities “fairer and easier to understand”.
Some BNPLs which have charged late fees will have to refund customers in specific circumstances.
What does this mean?
The FCA mentions that its changes will impact Klarna, Clearpay, Laybuy and Openpay. The latter three will be impacted by the instruction to refund some customers. The FCA says the firms it’s working with have “all voluntarily agreed to change their approach”.
