Regulation of Buy-Now, Pay-Later: consultation on draft legislation (October 2024)
Read the full outcome
Detail of outcome
The government has published its consultation response, summarising the feedback it received and setting out its final position on the proposals. Respondents expressed a strong desire for action in this area and were generally supportive of the proposed regulatory regime. The government will now proceed to lay the draft affirmative statutory instrument (The Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) Order 2025) for bringing BNPL products into regulation.
Original consultation
Consultation description
Across the UK, millions have used Buy-Now, Pay-Later (BNPL) products, which can be a helpful way of managing finances from month to month. However, without regulation there are risks.
The government has published a consultation setting out its plans for regulating the BNPL market. These plans aim to ensure people using BNPL products receive clear information, avoid unaffordable borrowing, and have strong rights when issues arise. The government’s approach will maintain access to a popular product while adding safeguards.
The consultation will be open until 29 November. After reviewing feedback, the government will bring forward legislation as soon as possible.
This consultation responds to feedback HM Treasury received to its previous consultation that ran between February and April 2023: Regulation of Buy-Now Pay-Later: consultation on draft legislation
Documents
Updates to this page
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Updated with Consultation response
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First published.