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16 November 20211 minute read

Regulation of 'Buy-Now Pay-Later' products - HM Treasury Consultation

HM Treasury has published its much-anticipated consultation on the Regulation of Buy-Now Pay-Later” products (Consultation). This action was launched in response to the concerns and recommendations raised in the Woolard Review, which (amongst other topics) considered potential consumer detriment in relation to the unregulated Buy-Now-Pay-Later products (BNPL), which are currently exempt from regulation.

The Consultation proposals seek to strike a balance between ensuring consumers have appropriate protection, and access to useful financial products. The prospect of further regulation for BNPL will have consequences for merchants, third-party BNPL finance providers, and the consumer.

Download our review to look at: BNPL vs other short-term interest-free credit products; the risk of consumer detriment; the scope of the new regulation; proportionate regulatory controls for BNPL; key points of note; and some thoughts around next steps.

Download the full publication here.