Don't get caught out by new Buy Now Pay Later rules
Summary
Buy Now Pay Later (BNPL) services have been regulated since July, requiring lenders to obtain approval and check whether customers can afford each purchase. The article advises shoppers who face borrowing limits or repayment problems to review spending, cancel subscriptions where useful, and seek free debt advice.Key Facts
- BNPL lenders, including Klarna and Clearpay, must have regulatory approval to operate.
- The new rules require affordability checks for BNPL transactions, and a lender may block a purchase if a customer does not pass.
- The checks can vary depending in part on the amount borrowed.
- The rules give shoppers more access to refunds and independent decisions on complaints.
- Debt adviser Sara Williams recommends postponing non-essential purchases and avoiding purchases that require a high credit limit.
- The article suggests cancelling subscriptions if their cost is contributing to reliance on BNPL.
- People struggling with loan repayments are advised to seek help early and use MoneyHelper to find free debt advice.
- MoneyHelper offers tools to help people list debts, check benefit and grant eligibility, and prioritize bills.
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