Regulation of Buy-Now Pay-Later: consultation
This consultation seeks views on the creation of a proportionate approach to the regulation of Buy-Now Pay-Later (BNPL) products. This consultation closes at 11:59pm on 6 January 2022.
On 2 February 2021, the government announced its intention to bring unregulated interest-free BNPL products into regulation given the potential risk of consumer detriment highlighted in ‘The Woolard Review A review of change and innovation in the unsecured credit market.’ This consultation sets out policy options to achieve a proportionate approach to regulation of BNPL. The consultation considers the potential scope of regulation, to target as closely as possible products where consumer detriment could arise. It also seeks views on a range of regulatory controls that could be put in place for BNPL, so that they are focused on those elements of lending practice that are most closely linked to the potential consumer detriment in this market.