Do you offer Buy Now Pay Later products? It's time to review your regulatory needs.
Since the publication of the Woolard Review last year, the regulation of interest-free BNPL products has not been a matter of if, but when. HM Treasury has published the government's response to its October 2021 consultation on the regulation of BNPL, with the following key messages:
- draft legislation for regulation should arrive by the end of 2022
- the distinction between BNPL and short-term interest free credit (STIFC) is to be re-evaluated, so third-party providers of both will be brought under regulation
- the financial promotions regime is to apply in full to all BNPL and STIFC agreements
- maintain the proposal that consumers should have the ability to refer their complaint for product to the Financial Ombudsman (FOS)
The government will soon publish another round of consultation before drafting and laying secondary legislation thereafter. We encourage any firms offering BNPL to be ahead of the curve and contact us today to see how upcoming changes may effect how you do business and what measures you must have in place.
Find out more about the work we do with retailers here: https://www.productpartnerships.com/our-experience/online-retailers/