City Of London
Buy-Now-Pay-Later Lenders to Get Tighter Regulation in the UK
- Companies will be regulated by the FCA, Treasury announces
- Changes come as borrowers flock to interest-free payments
Companies from Apple to Klarna are racing to offer shoppers the chance to pay for small items in installments.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
The UK government is tightening rules on buy now, pay later loans to try to prevent borrowers from taking on unaffordable debts.
After months of consultations, the Treasury confirmed that lenders will be required to carry out affordability checks on customers and ensure advertisements are fair. Providers will need to be approved by the Financial Conduct Authority and borrowers can take complaints to the Financial Ombudsman Service.