Regulation Coming for Buy Now, Pay Later
Britain announces plan to implement consumer protections
While consumers enjoy the ease and convenience of Buy Now, Pay Later providers such as Klarna and AfterPay, the small loans offered at the point of sale come with certain risks.
In fact, one survey indicated:
32% of Buy Now Pay Later plan users have had to skip paying an essential bill such as rent, utilities or child support in order to make their payments. Even after that, 30% report that they’ve struggled to make their payments.
That may be why the Financial Conduct Authority (FCA) of Britain is moving to implement some key consumer protections.
Reuters reports:
Britain plans to make “buy now, pay later” (BNPL) companies carry out affordability checks, gain approval by the Financial Conduct Authority (FCA) and ensure adverts are fair and clear, the government said on Monday, in measures to regulate the sector.
