BNPL credit products to be regulated by the FCA
In Brief:
The regulations will clamp down on unregulated BNPL creditors and focus on consumer protection
This will mean consumers are able to take complaints to the Financial Ombudsman Service
These new regulations will affect up to 10m borrowers who are already exposed to unregulated lending products
What does this mean?
“People should be able to access affordable credit, but with clear protections in place. That is why these proposed regulations are so important,” said Andrew Griffith, economic secretary to the Treasury. “Today’s summit will also help regulators and banks better understand the best ways to support people who feel boxed in by debt and open up the financial system to people who find it more difficult to access.”
