To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of the Financial Conduct Authority issuing guidance on communicating the (a) potential effect on credit score, (b) potential sale of debts to collection agencies and (c) other risks of buy now pay later products to people considering using those products.
1 September 2020
On 12 November 2019, the Financial Conduct Authority (FCA) introduced new rules for the buy now pay later market following its high-cost credit review. The rules prevent firms from charging backdated interest on the amount repaid by the customer during the offer period, requires that promotions contain balanced and appropriate information, and means that firms must give customers prompts to remind them when offers are due to end.
The FCA continues to monitor the buy now pay later market to identify areas that may cause consumers harm and will issue further guidance whenever it deems it necessary.