Consultation outcome

Regulation of Buy-Now Pay-Later: consultation

This was published under the 2019 to 2022 Johnson Conservative government
This consultation has concluded

Read the full outcome

Consultation Response

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Detail of outcome

The government has carefully reviewed the responses to the consultation. This document summarises these responses and sets out how the government intends to regulate Buy-Now Pay-Later products. It also seeks further stakeholder views on merchant-provided short-term interest-free credit to enable a final decision on the scope of regulation. Given the complexity of this regulation, the government intends to publish and consult on draft legislation at the end of the year.


Original consultation

Summary

This consultation seeks views on the creation of a proportionate approach to the regulation of Buy-Now Pay-Later (BNPL) products. This consultation closes at 11:59pm on 6 January 2022.

This consultation ran from
to

Consultation description

On 2 February 2021, the government announced its intention to bring unregulated interest-free BNPL products into regulation given the potential risk of consumer detriment highlighted in ‘The Woolard Review A review of change and innovation in the unsecured credit market.’ This consultation sets out policy options to achieve a proportionate approach to regulation of BNPL. The consultation considers the potential scope of regulation, to target as closely as possible products where consumer detriment could arise. It also seeks views on a range of regulatory controls that could be put in place for BNPL, so that they are focused on those elements of lending practice that are most closely linked to the potential consumer detriment in this market.

Documents

Regulation of Buy Now Pay Later consultation

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email digital.communications@hmtreasury.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Updates to this page

Published 21 October 2021
Last updated 20 June 2022 + show all updates
  1. Consultation response added

  2. First published.

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