Regulation of Buy-Now, Pay-Later: consultation on draft legislation (October 2024)
The government is consulting on draft legislation to bring Buy-Now Pay-Later products into regulation.
Across the UK, millions have used Buy-Now, Pay-Later (BNPL) products, which can be a helpful way of managing finances from month to month. However, without regulation there are risks.
The government has published a consultation setting out its plans for regulating the BNPL market. These plans aim to ensure people using BNPL products receive clear information, avoid unaffordable borrowing, and have strong rights when issues arise. The government’s approach will maintain access to a popular product while adding safeguards.
The consultation will be open until 29 November. After reviewing feedback, the government will bring forward legislation as soon as possible.
This consultation responds to feedback HM Treasury received to its previous consultation that ran between February and April 2023: Regulation of Buy-Now Pay-Later: consultation on draft legislation
As set out in the consultation response, following further industry and FCA engagement, the government has decided to exempt domestic premises suppliers from requiring credit broking permissions to offer BNPL products as payment options.