It was recently reported that The FCA is working with Buy-Now Pay-Later firms to make contracts fairer and easier to understand.

Following the Woolard Review, the Government plans to change the law to bring some of the current forms of unregulated Buy-Now-Pay-Later products into FCA regulation. Whilst the FCA does not yet have powers to regulate these firms, they are working with Clearpay, Klarna, Laybuy and Openpay to assess the fairness and transparency of their terms.

Sheldon Mills, Executive Director of Consumers and Competition at the FCA, said:

'Buy-Now Pay-Later has grown exponentially. We do not yet have powers to regulate these firms, but we do have powers to review the terms and conditions of consumer contracts for fairness, and have acted proactively to ensure that the BNPL industry adopts high standards in their terms and conditions.

'The four BNPL firms we have worked with have all voluntarily agreed to change their approach. We welcome this and hope that the rest of the industry will now follow.'

This represents a key move in the Buy-Now-Pay-Later space, as formal regulation draws closer. If your company utilises consumer finances products to sell goods or services, get in touch with us today to find out the preparations you need to make.

#compliance #regulations #buynowpaylater #FCA #consumercredit

FCA secures contract changes for buy-now-pay customers