CCTA commenting on HM Treasury consultation on the regulation of BNPL said:

“The consultation on BNPL is welcome, but it highlights that the current regulation of consumer credit is complex and unwieldy. These products should already be regulated by the FCA, but the system takes too long to change.”

“We support BNPL regulation, including checks on a customer’s ability to repay if they are taking instalment plans. We also need increased visibility of this form of borrowing on credit records. BNPL use is currently invisible and means other lenders are making decisions without seeing the whole picture”.

“Consumers using BNPL who fall into financial difficulty should receive the same protection as users of other consumer credit products. They should also be able to use the Financial Ombudsman Service as an independent method of dispute resolution.”