BNPL regulation plans not enough – comment
In response to the government’s announcement today on BNPL regulation, Neil Kadagathur, CEO and Co-Founder of Creditspring said: “While the proposed regulations are a welcome step forward, we simply cannot wait that long to regulate the BNPL sector. There is chronic miseducation about BNPL – one in seven UK adults thinks it’s impossible to get into debt using BNPL and a third are unaware that it’s even a form of borrowing and debt. This, combined with the cost of living crisis which we know is pushing more people into borrowing, is unsafe and unsustainable, and is guaranteed to damage the long-term financial health of millions of UK borrowers.
“In lieu of immediate regulation, the onus falls to lenders to ensure they are lending safely and protecting borrowers by not providing more credit than an individual can safely afford to repay.”