- From July 15, Buy Now Pay Later (BNPL) services will be regulated by the Financial Conduct Authority (FCA), requiring lenders to be authorised and adhere to the Consumer Duty.
- The new regulations aim to provide enhanced protection for the nearly 11 million UK consumers who used BNPL services in the 12 months to May 2024.
- Lenders will now be required to conduct affordability checks, provide clearer information on payment terms, and offer support to customers experiencing financial difficulties.
- Consumers will gain the right to complain to the Financial Ombudsman Service (FOS) for agreements made from July 15, covering issues such as affordability and understanding of terms.
- Experts advise consumers to be aware of the potential impact of BNPL use on their credit reports and to seek free debt advice if they are struggling with payments.
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