Government accused of inaction over “buy now, pay later” lenders

According to the Financial Times, shadow City minister Tulip Siddiq has written to her counterpart in government Andrew Griffith claiming that policies – promised back in February 2021 – to make sure BNPL products came with the right protections were being “kicked into the long grass” ahead of the next general election.

 
She said: “I recognise that many people value BNPL deals, as they can be a useful way to budget and pay for items. But the government’s failure to regulate the sector has left millions at risk from bad actors in the market.”  

According to the Financial Times, ministers are grappling with the trade-offs involved in regulating a sector amid the risk that some operators could leave the market if rules are too severe, however government insiders say Griffith is determined to press ahead regulation – while the treasury hoped to respond to its recent consultation this autumn.

The government department told the outlet: ““Regulation of buy now, pay later products must be proportionate so borrowers are protected, while still being able to access these useful interest-free products. No decisions have been made as we are reviewing the responses to our recent consultation and will report back in due course.”

See more of our BNPL coverage:

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