Four of the most well-known and frequently used buy now, pay later (BNPL) firms have agreed to change terms in their customer contracts to make them fairer and easier to understand after the Financial Conduct Authority (FCA) said it was concerned there was a potential risk of harm to consumers as a result of the way some had been drafted.
Clearpay, Klarna, Laybuy and Openpay, have fully co-operated with the regulator’s recommendations.
Even though the type of buy now, pay later agreements offered by these firms are not yet regulated, the FCA was able to use the Consumer Rights Act to assess the fairness and transparency of firms' terms.
