The Money Advice Trust has welcomed the recommendations of the Woolard Review and today’s government announcement that buy now, pay later products will be brought under FCA regulation.
Joanna Elson CBE, Chief Executive of the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said: “The Woolard Review is right to highlight the harm that unregulated buy-now-pay-later products can cause, and we welcome the government’s swift action today in accepting its call to bring these products under FCA regulation.
“The broader review is a welcome step in making sure the credit market works for everyone – and we share the view that improvements are needed to reduce consumer harm.
“We are particularly pleased to see that the Review recognises the need for secure, long term funding for free debt advice as demand increases, following the pandemic. In the wake of Covid-19, we also need a full review of debt options available to people in financial difficulty – and the government should urgently confirm a timetable for its introduction of Statutory Debt Repayment Plans, which in the future will play a key role in helping households to recover from financial difficulty.”