Stricter checks will block some shoppers

Shopping shopping now buy, then payment (BNPL) will have to spend more strict purchasing controls under new rules that came into force next July.

This may slow down the ability of some shopping to jump to something that is not potentially suitable for a few clicks where such a loan will be rejected and a few clicks.

The regulators say that people will prevent people from borrowing too much and caught with late payment fees.

Nurse Julie Rowbottom told BBC that it was “easy to fall into a trap with this kind of borrowing.”

He said that the option at the end of your fingers made life easier, but the debt was “easily and quickly installed”, so he carefully managed his financial situation to avoid falling into a spiral.

BNPL offers interest -free loans to shoppers and allows them to buy something immediately, then repays in 12 or less installments in 12 months or less.

Large operators such as Klarna and Clearpay appeared and presented as a payment method by most of the largest retailers in the UK.

Approximately 11 million people in the UK used payment later last year, City Watchdog – Financial Behavior Authority (FCA) – Estimation.

The survey found that 30% of adults aged 25 to 34 years used at least once in May 2024. The most common use was “lifestyle and beauty purchases” and “to treat myself or other people”.

BNPL is currently irregular, which means that lenders do not need FCA approval for the operation of the lenders.

Charitable organizations, increasing number of people have entered into financial problems after seeing repeated requests for extra protection.

Vikki Brownridge, General Manager of StepChane Debt Assistance Authority, described new offers as “an important step” in making the sector in accordance with other credit types.

“Buy now, then payment makers are twice as much for all credit users to borrow the basic bills, and our research has found that BNPL is now as common as using a loan deposit between the UK adults.” He said.

In recent days, the legislation has passed, that is, FCA means that it can now consult the industry regulating plans – after years of promises from politicians, loans to control the “Wild West”.

In addition to preliminary controls on purchasing, plans should lead to faster access to repayments for consumers and complaining to financial ombudsman.

In addition, if a payment is missed, it should lead to clear information on any effect on cancellation rights, costs and credit ratings.

For more than 10 years, regulators estimate that consumers will be £ 1.8 billion better, while the profits of the providers will fall £ 1.4 billion due to less processing.

However, he said he wanted to give “flexibility” about how they apply new rules, including affordable price assessments to loans.

This may see different loans using different ways to test whether people meet repayments.

“We do not prescribe how companies do this, because digital journeys will change. However, companies should do affordable price control to ensure that consumers can repay this borrowing.

“Credit is not right for everyone. Potentially there will be consumers who cannot access this product, and companies can sign them to other support, such as debt advice.”

The leading providers said that they have completely supported the regulation of the sector in the UK, but that companies should allow consumers to innovate while protecting consumers.

The spokesperson said: “After five years of constructive work with the Treasury, we are now entering the house directly to buy, then we pay a reality to the arrangement – a big gain for the UK consumers.

He continued: “We are looking forward to working with FCA on the rules that protect consumers while maintaining election and innovation in the center of the British credit market.”

However, the offers come in the same week, as Chancellor Rachel Reeves said. Less regulation was needed in financial services. FCA, now a part of the purchase, then the fee will enter the current FCA editing plans, he said.

FCA’s plans will continue until the end of September.

There will be a temporary regulation regime before the new rules enter into force next July. This means that firms should comply with the FCA rules and can continue to trade before they are fully authorized.