Regulation will ‘build trust’ in buy-now-pay-later market
Regulation will help clear-up product confusion and build trust in the buy-now-pay-later (BNPL) market, industry experts have said.
Yesterday, the government announced plans to regulate the BNPL market. This followed the publication of the Woolard Review, an evaluation of the unsecured payment market launched in September.
As part of the review’s proposals, BNPL products will be regulated by the Financial Conduct Authority (FCA), and customers will be able to escalate complaints to the Financial Ombudsman.
Lenders will also be required to carry out affordability checks on customers as part of the proposed regulations.