This includes, for example, posters in shop windows, paid for Google ads, and posts made by influencers on social media. 47 of BNPL users say they are at least somewhat likely to make a late payment within the next year. A financial promotion for BNPL is any form of communication made across any media in the course of business, that invites a consumer to purchase a good or service by entering a BNPL agreement. 33 of buy now, pay later users have made a late payment or incurred a late fee. The FCA has written to BNPL providers and the British Retail Consortium.Ī financial promotion is an invitation or inducement to enter into an agreement. So far this year, FCA action against firms that have breached its rules have led to 4,226 promotions being changed or withdrawn. The FCA has confirmed it will use criminal and regulatory enforcement powers if it sees promotions that do not comply. The FCA is continuing to engage with BNPL providers and are proactively monitoring the market to ensure expectations are met. The FCA recently held a roundtable with BNPL providers to discuss upcoming regulation and called on firms to do more to support borrowers in financial difficulty, including signposting to money guidance and debt advice.Įarlier this year the FCA worked with BNPL firms to secure changes to potentially unfair and unclear terms in BNPL contracts using powers under the Consumer Rights Act. It is vital that adverts are clear, fair and not misleading.'Īlthough the FCA does not yet regulate BNPL products it has been proactively addressing concerns about potential harms to consumers. 'Firms need to ensure consumers, particularly those in vulnerable circumstances, are equipped with the right information at the right time, so they can make effective, timely and properly informed decisions. Sheldon Mills, Executive Director of Consumers and Competition at the FCA, said: 'As we face a cost-of-living crisis, consumers are having to make difficult decisions about their finances and how they pay for goods and services. information about when charges become payable.
If you’ve bought something online recently, you might’ve already noticed a buy now, pay later option during checkout. The most common number of installments is four.
any other adverse consequences such as the impact on the customer's credit file Buy now, pay later (BNPL) apps and services let you purchase items online and pay for them over time, typically in weekly, semi-weekly, or monthly installments.
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