The UK government has introduced new rules to regulate buy now, pay later (BNPL) services, aiming to protect consumers from unregulated borrowing. Under the new legislation, lenders will conduct affordability checks to prevent excessive debt and provide faster refund access. BNPL usage has surged, with 11 million UK residents estimated to have used it in the past year, raising concerns about overspending. Consumer groups support the move, noting many users are unaware of the debt implications. BNPL services allow shoppers to spread payments over weeks or months, but without regulation, some consumers struggle to repay. The new measures include upfront affordability checks, quicker refunds, and access to the Financial Ombudsman for complaints. These rules aim to protect shoppers while fostering sector growth and innovation.
— new from BBC