The Treasury has announced plans to regulate buy now, pay later (BNPL) products in response to its 2021 consultation, however, Martin Lewis is warning that the pace of progress is painfully slow after it emerged the Uk Government aims to lay secondary legislation by mid 2023.
Under the proposals announced on Monday, lenders will be required to “carry out affordability checks” and will “amend financial promotion rules to ensure buy now pay later advertisements are fair, clear, and not misleading”, the department added.
The Treasury said that lenders offering the product will need to be approved by the Financial Conduct Authority (FCA) and borrowers will be able to take a complaint to the Financial Ombudsman Service (FOS).
