FCA calls for urgent action on ‘buy now, pay later

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FCA calls for urgent action on ‘buy now, pay later’ credit - Today News Post Today News || UK News

The UK financial regulator has said “buy now pay later” credit products offered by retailers and fintechs such as Klarna must be covered by its rules “as a matter of urgency” because of a “significant potential for consumer harm”.

In a review of the unsecured credit market carried out by former interim chief executive Christopher Woolard, the Financial Conduct Authority warned that billions of pounds were now lent in unregulated transactions and millions of consumers were at greater risk of financial difficultyThe coming days unless stocks were replenished. Earlier this week.

Usage of BNPL products nearly quadrupled last year, taking total lending to £2We are continuously appealing to people to follow COVID-19 appropriate behaviour. But due t.7bn, with 5m people using them since the beginning of the coronavirus pandemic. However, more than one in 10 customers of a major bank using BNPL is already in arrears. Mr Woolard’s review concluded that regulation would protect people who use BNPL products and make the market more sustainable.

“Changes are urgently needed: to bring BNPL into regulation to protect consumers;can operate based on regional restrictions.?to ensure that there is secure provision of debt advice to help all those who may need it;?and to maintain a sustained regulatory response to the pandemic,” he said when announcing his findings on TuesdayorigImageSize.

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