logo
Buy now, pay later finally set for consumer protections... but not until summer 2026

Buy now, pay later finally set for consumer protections... but not until summer 2026

Daily Mail​18-07-2025
Buy now, pay later consumer protections are finally set to be brought in under new proposals from the Financial Conduct Authority.
Under the proposed regulation, lenders will be required to check that users can afford to repay BNPL loans, and will have to offer support to customers that get into financial difficulty.
BNPL has ballooned in popularity in recent years, with shoppers able to split payments - typically in three or six chunks, rather than having to fork out the full sum up front or stick on a credit card.
The new rules will mean that BNPL users can make complaints to the Financial Ombudsman if something goes wrong.
The new regulation is expected to come into force in 2026 when BNPL falls under the FCA's remit. The FCA's consultation, open to BNPL lenders, consumer groups and the wider industry, will run until 26 September.
Sarah Pritchard, deputy chief executive at the FCA, said: 'We have long called for BNPL products to be brought into our remit, so people can benefit from BNPL while being protected.
'Our regulation will help consumers navigate their financial lives, with checks on whether they can afford to repay, support when things go wrong and access to the right information to make informed decisions.
'We're mainly relying on existing requirements, including the Consumer Duty, rather than proposing to make lots of new rules, supporting growth and allowing firms to innovate.'
One in five adults are believed to have used BNPL at least once in the year to May 2024, an increase of 17 per cent on the year prior.
One In six choose BNPL due to the minimal credit checks that it has, according to research from TransUnion.
However, 48 per cent said they would be more likely to use BNPL after regulation has been passed, according to data from BNPL lender Clearpay.
The FCA says there will be temporary permissions put in place, meaning that firms will need to follow FCA rules, but will be able to continue to trade before they are fully authorised.
Madhu Kejriwal, chief executive of TransUnion UK and Europe, said: 'We welcome the government's continued focus on bringing BNPL into the regulatory framework.
'Clear, proportionate regulation is essential to protect consumers while enabling innovation and access to flexible payment options.
'I see it as an essential step in the evolution and maturation of the market.'
A spokesman for Clearpay said: 'We will support the FCA as it consults on and finalises its specific rules for the sector.
'Coming into force on 15 July 2026, regulation will establish a consistent operating environment and clear compliance standards for all providers.
'Clearpay has always called for fit-for-purpose regulation that ensures consumer protection, provides much-needed innovation in consumer credit and supports the UK's thriving fintech sector.'
Some have concerns about the product, however, largely due to the current lack of regulation.
Neil Kadagathur, chief executive of Creditspring, said: 'The issue is that it has been designed and marketed as a risk-free solution for everyday spending, but in reality, it can push people into debt without them fully understanding the consequences.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Is THIS the most overpriced semi-detached in Britain? House hunters stunned after couple put three-bed home on sale for £2M over average asking price... but neighbours say it is worth it
Is THIS the most overpriced semi-detached in Britain? House hunters stunned after couple put three-bed home on sale for £2M over average asking price... but neighbours say it is worth it

Daily Mail​

time11 minutes ago

  • Daily Mail​

Is THIS the most overpriced semi-detached in Britain? House hunters stunned after couple put three-bed home on sale for £2M over average asking price... but neighbours say it is worth it

A couple have infuriated house hunters online after listing their home for almost £2million over the average sale price of their street. Residents reacted with 'shock' and 'disbelief' after the ordinary looking property in Hove, East Sussex was put on the market for a staggering £2.5million. The asking price for the smartly presented property has caused consternation among potential buyers who have claimed it is 'overpriced.' They claim that although the red-brick home has a sought-after seaside location, it actually backs onto a block of high rise flats and sits on a busy road which has a high crime rate. The owners - who are in their late 80s - bought the property in East Sussex in 2010 for £750,000 but have now put it on the market for more than three times that amount. According to property experts Purple Bricks, the average cost of a house on the street where the couple are looking to sell is £600k. One resident told MailOnline: 'I'm shocked. It's incredible how much house prices have risen in the last 15 years but I'd never expect a house to be on the market for so much - it's a King's ransom. 'It's unbelievable really. I understand it is in a desirable location but this road is very busy all the time and the back garden looks out over the flats - not exactly a beautiful view.' The house sits just 100 yards from the pebble beach. The elderly couple are understood to be selling it so they can downsize away from the seafront. Hove is a well-heeled and desirable location to live where the average price of a detached house is £846,600. Neighbour Barbara Crafts, said: 'They are a lovely couple but they're getting on. 'Although the house only has three bedrooms it is deceptively large and the bedrooms are huge and have walk-in dressing rooms.' Mrs Crafts, who is in her 70s, who lives in a spacious three-bedroom flat on the street, said: 'Although it looks quite ordinary from the front it is a lovely house and very spacious and they've spent some money doing it up. 'I've lived here for around eight years and my children who live up north are always telling me to sell. They tell me I could buy a fantastic property near them for just a fraction.' The house, which boasts a drive and a garage, also has a study, dining room, sitting room, four bathrooms and an attic games and media room. Rachel Dent, a mother-of-two who lives in a two-bedroom flat on the street, said: 'That is an awful lot of money but that house is like a tardis - it is absolutely massive on the inside. There is 250sqm of living space, which is huge. 'It is deceptive as from the outside it looks like it could be in any street in Britain but it goes back a long away and is really very big. It might not have the wow factor on the outside but the inside is a different story.' The property is immaculately turned out inside with a host of homely fittings Viewers checking the online listing questioned how the 'modest' home could command such a high price. One said: 'Those flats overlooking the back would be an instant no for me even if dirt cheap. Half the house is the master suite. Seems unnecessary.' Another said: '£2.5m is insane money for this. Surely its not worth even close to that. Even at half, it would be steep, no?' Another viewer said: 'How much!? And why does that main bedroom need two dressing rooms and such a huge bathroom?! Should have just made one of the dressing rooms a guest room instead.' Yet another said: 'Faaaaar too of property faces west, back faces east. Front faces a row of guest houses/hotels including a God awful 60's(?) 5 story guest house directly opposite. 'Back faces an 11 story block of flats. So, no privacy and no sunlight in the morning or evening.' It's an ambitious asking price, but not the most audacious in recent memory. Last year, a Russian millionaire who tried to sell a London 'council house' for £3.5m was forced to concede defeat and make a drastic u-turn. The ordinary-looking four-bed suburban property had attracted widespread mockery due to its eye-watering price tag when it was listed last year. But owner Lukov Nikolov refused to bow down claiming the fee was justified because he spent £1.4m renovating the property. When MailOnline visited the house, more than a year after it was put on the market, neighbours revealed the wealthy businessman had been forced 'move in himself' after failing to find a buyer. The house was built in the late 1950s and used by police officers relocating to work in London for the Met Police. But in every other respect it's equivalent to nearby council housing in style and size. Despite being unable to find househunters with deep enough pockets, Mr Nikolov then listed another property on the same road for £3m. One resident told MailOnline: 'He's got another one too, just up the road, which has been on the market for a while. 'The [second property] is huge. It's got a basement, a cinema and all the rest of it. They've probably doubled the square footage. 'I think he probably moves between them.' Mr Nikolov bought the first property for £1.2m in 2015 and began to renovate inside. He was able to dig down and create a new spacious basement 'flooded with natural light', which increased the properties' square footage by a third. The home now deceptively spreads over 3650sq ft of interior space and has four floors as well as its own cinema room, which, in the view of Mr Nikolov justified the £2.3million increase in value. Mr Nikolov's second property was bough for the cheaper fee of £878,000 before renovating it too. Properties in Canonbury sold for an overall average price of £934,290 in the last few years, according to RightMove, with the majority of sales being flats, which sold for an average price of £633,512. Terraced properties sold for an average of £1,659,972, with semi-detached properties fetching £3,873,333 - placing Mr Nikolov's property slightly below average.

UK could save £5bn if Bailey changes course on debt sales
UK could save £5bn if Bailey changes course on debt sales

Telegraph

time41 minutes ago

  • Telegraph

UK could save £5bn if Bailey changes course on debt sales

Taxpayers would save up to £5bn next year if Andrew Bailey overhauls the Bank of England's controversial programme of bond sales, analysts have calculated. Deutsche Bank has said Rachel Reeves would be spared from transferring billions of pounds to Threadneedle Street if it stopped selling long-term debt amid a dramatic drop in bond prices. The Bank is currently unwinding the stockpile of gilts it amassed during the financial crisis and lockdown, when it created almost £900bn to boost the economy. When interest rates were at record lows of 0.1pc during the pandemic, the Bank earned far more on its returns from government bonds than it had to pay in interest to commercial banks. However, this reversed dramatically once interest rates started to rise. The Bank is now also actively selling gilts back to the market as part of so-called quantitative tightening (QT), crystallising billions of pounds of losses for the taxpayer.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store