In brief: UK hardens tone against BNPL

Acting as a counter-current response to recent decisions The UK Government has just clarified the new regulations that will now govern the BNPL market in the United Kingdom.

The Government of the United Kingdom presented its new ambitions by saying at the outset that it wanted to end the drifts linked to the BNPL system to protect millions of consumers. And its approach takes the form of reforms of the Consumer Credit Act, now incorporating the BNPL.

Companies operating BNPL's activities in the territory will have to comply with the new standards in force next year. They shall:

• carry out prior checks to ensure borrowers' ability to repay,
• facilitate early repayments,
• facilitate complaints and complaints to the financial mediator.

The British Government's objective is also to clarify the conditions for granting these BNPL offers and to highlight the risks of over-indebtedness. A major challenge, while according to its latest estimates, more than 10 million consumers would currently be customers of such services in its territory.

The bill regulating the BNPL was tabled in Parliament on 19 May, concluding long-standing work initiated.

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