Displaying items by tag: Financial Conduct Authority

Christians Against Poverty (CAP) supports people in debt and poverty. In recent years Buy Now Pay Later (BNPL) has emerged and become a popular way of making payments online. Consequently CAP welcomes the Financial Conduct Authority’s (FCA) latest consultation to bring BNPL into its regulatory oversight,and is broadly in agreement with all the FCA’s suggestions for exemption areas Including invoicing, trade credit, employer loans and social housing landlord loans. CAP also wants the FCA to ensure that people are fully informed of the risks of using these products, such as late fees. It welcomes pre-contractual agreements for consumers to sign so that they have more time to think about their decisions. Whilst BNPL products are interest-free, CAP wants the FCA to monitor market changes. If consumers are dependent on BNPL to smooth cash flow when fees or charges are applied it could be harmful.