HM Treasury published its response to the October 2024 consultation on Buy-Now, Pay-Later (BNPL) and confirmed it will legislate to bring BNPL into regulation. From next year, BNPL firms will need to follow consistent standards intended to give more than 10 million users clearer information and stronger consumer protections. The new requirements include upfront affordability checks to prevent unaffordable borrowing, fairer and faster access to refunds, and the right for consumers to complain to the Financial Ombudsman, aligning BNPL with other credit products. The announcement also sits alongside reforms to the Consumer Credit Act that would replace the current regime, remove outdated rules and shift oversight to the Financial Conduct Authority’s more flexible system. HM Treasury confirmed the legislation bringing BNPL into regulation will be laid in Parliament on 19 May.
HM Treasury 2025-05-19
United Kingdom's HM Treasury confirms legislation to bring Buy-Now, Pay-Later under FCA regulation with affordability checks and Ombudsman access
HM Treasury will regulate Buy-Now, Pay-Later (BNPL) services, requiring firms to adhere to consistent standards for clearer information and stronger consumer protections. New requirements include upfront affordability checks, improved refund access, and the right to complain to the Financial Ombudsman. This aligns BNPL with other credit products and accompanies reforms to the Consumer Credit Act, transitioning oversight to the Financial Conduct Authority's system.