The UK’s financial services regulator has issued a warning about the “unlawful” promotion of buy now, pay later products.
In Brief:
It’s warned companies against promoting BNPL products that aren’t authorised.
Authorised firms must ensure all their promotional advertising complies with the FCA’s guidelines.
Unauthorised firms must have their financial promotions approved by an FCA-authorised firm.
What does this mean?
The FCA is concerned mainly about customers becoming victims of misleading BNPL promotions especially online and via social media. It says this problem is being exacerbated by the current cost-of-living crisis. The FCA says it will use criminal and regulatory authorities to force firms to comply since it had to bring action against over 4000 buy now, pay later firms in 2021.
