fintech / news / / Daily Record
Up to 30 million people in the UK have used Buy Now, Pay Later (BNPL) services such as Klarna and Clearpay at some point.
The FCA will now regulate BNPL firms like Klarna and Clearpay under Consumer Duty rules.
KEY POINTS
- BNPL lenders must conduct affordability checks before lending and support struggling customers.
- Shoppers can now escalate BNPL complaints to the Financial Ombudsman Service for formal resolution.
- BNPL providers must secure FCA authorisation, with a temporary regime running May 15 to July 1, 2024.
- BNPL usage now potentially impacts credit scores and mortgage affordability assessments more directly.
COMPANIES
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