StepChange reacts to new BNPL regulation

^{17 October 2024}

StepChange Debt Charity is pleased to see reports that the Government will announce its plans to regulate Buy Now, Pay Later (BNPL) services tomorrow.

Richard Lane, Chief Client Officer at StepChange Debt Charity, said:

“After several years of raising concerns around Buy Now, Pay Later (BNPL) as an unregulated form of credit, we’re pleased to see the Government following through on its commitment to regulate BNPL and prioritise consumer protection from problem debt. BNPL can be a useful form of credit for those looking to manage chunky expenses but, as with every other form of credit, it needs to be bound by consistent rules that minimise consumer harm. 

“We need to see BNPL providers introduce proper affordability checks and end aggressive marketing at checkout, which can lead to impulse decision making and can cloud consumers’ judgement on affordability.

“As cost of living pressures continue to burden millions of households, consumers need more protection, not less. A properly regulated BNPL sector will go some way to facilitating that.”