MSE News: Buy now, pay later firms to be regulated – and shoppers now face affordability checks

MSE_Helen_K

Buy now, pay later firms, including the likes of Clearpay and Klarna, are to be regulated – and shoppers now face affordability checks before taking out this type of credit. The shake-up also means borrowers with complaints will be able to take cases to the Financial Ombudsman Service in future...

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'Buy now, pay later firms to be regulated – and shoppers now face affordability checks'

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DCFC79

Long time coming to be honest. 
I agree with Martin said on his show.
Some people dont think of the repercussions if they cant pay at a later date.

[Deleted User]

DCFC79 said:

Long time coming to be honest. 
I agree with Martin said on his show.
Some people dont think of the repercussions if they cant pay at a later date.

Question is, at what point do we become a nanny state, regulating what people can and can't spend their money on - yes some people are clueless and better money advice e.g. in schools, would be a start but at the same time, those who can take advantage of buy now pay later 0% deals and similar things like BT cards, should not have their potential to spend wisely taken away.

zippygeorgeandben

If you are wise with money and use a BNPL, you may have some money put away for any unforeseen moment in the future.   Unfortunately, most people take out these loans without a rainy day fund, so when something does go wrong, they haven't got the means to make up the agreed payments.  That's not the fault of BNPL, and I'm not suggesting it's the fault of the borrower but this is a reason why it might be more prudent to ask the question whether the borrower has the means to repay the loan if their job income reduces .