HM Treasury consulting on regulation of buy-now pay-later

HM Treasury launched a consultation on extending regulation to cover the growing number of buy-now pay-later (BNPL) products.

The consultation sets out policy options to achieve a proportionate approach to regulation of BNPL. Issues considered in the consultation include:

• the potential scope of regulation, to target as closely as possible products where consumer detriment could arise; and
• the range of regulatory controls that could be put in place for BNPL, so that they are focused on those elements of lending practice that are most closely linked to the potential consumer detriment in this market.