Millions of consumers relying on buy now pay later services will now undergo mandatory affordability assessments to ensure they can realistically manage their repayments. Lenders operating in the sector, including major providers such as Klarna and Clearpay, are legally required to conduct stricter background checks before granting credit. This major regulatory shift addresses long-standing concerns that shoppers using these popular installment methods lacked the same fundamental consumer rights and protections as those using traditional credit cards or personal loans. Under the updated framework, individuals who fail affordability evaluations may find their accounts blocked or their borrowing limits significantly reduced. Experts and debt advice charities, including StepChange and former advisors, recommend carefully reviewing essential spending needs, pausing to evaluate whether purchases would be made without credit, and keeping a close record of all active loan agreements to maintain household budgets. Crucially, the changes also grant shoppers clearer paths to securing refunds for faulty merchandise and accessing independent complaint procedures if something goes wrong, while directing those facing financial hardship toward professional support rather than immediate aggressive debt collection. Economic secretary to the Treasury Rachel Blake emphasized that consumers deserve robust safeguards and parity with traditional credit options. The rapid expansion of the buy now pay later market, particularly among individuals on lower incomes using these tools for everyday expenses, made these regulatory interventions essential to prevent unmanageable debt accumulation. Fuente: The Independent
También lo cubren: bbc.com - BBC News.
Ver más en News Today