The government is introducing tougher consumer protections on ‘buy-now, pay-later’ offers, amid concerns about the way such products are promoted
Risks include high levels of indebtedness, a lack of affordability checks and misunderstanding on the part of the buyer.
A Treasury consultation, ‘Regulation of buy-now, pay-later’, published this month, proposes to bring sellers under Financial Conduct Authority (FCA) supervision and tighten regulation.
Venetia Jackson, barrister at Pinsent Masons, said: Care will need to be taken around the financial promotions regime—especially where a merchant wants to devise its own promotion and will need an approver before it can be issued.’
Responses are due by 29 November.
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