Britain outlines plans to better regulate ‘buy now, pay later’ companies

Signage of Britain’s Financial Conduct Authority (FCA) regulator is seen at its headquarters in London, Britain March 10, 2022. REUTERS/Toby Melville

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LONDON, June 20 (Reuters) – Britain plans to ensure “buy now, pay later” (BNPL) companies carry out accessibility checks, gain Financial Conduct Authority (FCA) approval and ensure that advertisements are fair and clear, the government announced on Monday. , in measures to regulate the sector.

BNPL firms, which are unregulated, typically offer interest-free, short-term loans on the spot that spread payments for retail goods such as clothing and have, according to the government, rapidly gained popularity.

“Buy now, pay later can be a useful way of managing your finances, but we need to make sure people can embrace new products and services with the right protections in place,” said John Glen, economic secretary at the Department of Foreign Affairs. Finance.

“By maintaining Buy-Now Pay-Later to the high standards we expect from other lending and forms of credit, we are protecting consumers and supporting the safe growth of this innovative market in the UK,” he said in a statement. communicated.

The government said it would release a consultation on a draft law later this year and then table secondary legislation, used to complete the details of the laws, by mid-2023. After that, the FCA would consult on its rules for the sector, he added.

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Reporting by Elizabeth Piper; edited by David Evans

Our standards: The Thomson Reuters Trust Principles.

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