UK announces new rules for BNPL, two providers support changes
Organisation Citizens Advice noted that BNPL products are currently unregulated and the new measures were a 'crucial step' towards better protection for shoppers, the report said.
Its director of policy, Tom MacInnes, told the BBC: 'For too long, people have been exposed to unaffordable debt from a BNPL sector that has operated in a regulatory grey area," said T at Citizens Advice.
'For some, this has had dire consequences. Many people are struggling to repay credit they can't afford, falling behind on essential bills and often needing emergency support, like food bank vouchers."
Emma Reynolds, economic secretary to the Treasury, also said BNPL had 'transformed shopping for millions', but had left consumers exposed and operated as a 'wild west'.
'These new rules will protect shoppers from debt traps and give the sector the certainty it needs to invest, grow, and create jobs.'
Under BNPL, rather than paying the full amount of a purchase in one go, shoppers can spread payments into smaller amounts over a period of time, with payment in three or four monthly chunks being widely used by BNPL providers.
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