FCA publishes final rules on Buy Now Pay Later products

Regulatory Updates | 12/06/19

The Financial Conduct Authority (FCA) has published the final rules on Buy Now Pay Later (BNPL) products in its Policy Statement PS19/17: ‘Buy Now Pay Later offers – feedback on CP18/43 and final rules’. The FCA is going ahead with its original proposals set out in its Consultation Paper CP18/43: ‘High-cost Credit Review Feedback on CP18/12 with final rules and guidance and consultation on Buy Now Pay Later offers’, with some technical amendments to the definition of BNPL credit. Under the final rules firms can no longer charge backdated interest on amounts of money that have been repaid by the consumer during the BNPL offer period. These rules will be in force by 12 November 2019.