22 November 2021
The use of interest–free buy–now pay–later (BNPL) products is continuing to grow. In February 2021 the Financial Conduct Authority's (FCA) 'Woolard Review' highlighted a potential for consumer harm in this sector.
As a result the HM Treasury announced its intention for the FCA to regulate BNPL products. On 21 October 2021 it published its long–awaited Consultation Paper (the ‘Consultation Paper’), which sets out several policy options in order to achieve a proportionate approach to the regulation of BNPL products.