UK Moves Forward With Plans to Regulate Buy-Now, Pay-Later

The UK will introduce a series of stricter rules for buy-now, pay-later lenders from next year, a move that will bring the regulation of their offerings in line with other credit products.

Legislation bringing the BNPL industry under regulation will be laid before Parliament on Monday, according to a Treasury statement. Under the rules, lenders such as Klarna and Clearpay will be required to check shoppers’ affordability before offering loans, while borrowers will get faster access to refunds and the right to complain to the Financial Ombudsman.