In light of this morning’s FCA announcement confirming it will introduce new rules in the Buy Now Pay Later (BNPL) market, saving consumers around £40-60 million a year, Sean Kulan, Consumer Credit Sector Lead, Huntswood said: “These measures by the FCA should be welcomed and are part of its broader focus on protecting consumers within the consumer credit marketplace. The ability of firms to charge backdated interest has been a particular bone of contention, with many customers unaware of the ability of firms to retrospectively apply such charges against the entirety of the credit line. The regulator will now be ensuring that firms are implementing the changes and that they are being properly applied.
“Regulatory compliance is clearly a priority, so lenders should be checking that they have appropriate consumer safeguarding measures in place, while also revaluating their internal policies and procedures to ensure transparency. Taking these necessary steps will protect consumers, particularly those that are most vulnerable.”