services under regulation. The Money Saving Experts' plea followed reports over the weekend that the crackdown on the sector could potentially be shelved by the Government. Reasons towards the potential shelving are still unclear however Sky News reports that a number of the biggest BNPL players could exit the UK market if regulations are put in place. Martin Lewis took to Twitter opening his tweet with the phrase "Pls DON'T let this be true". Martin said: "Yes, BNPL (buy now pay later) used right can help people borrow interest free to spread necessary costs, but it's still a debt. "Protection's needed for when it's not right. Regulation doesn't curtail the industry." With BNPL, instead of paying at the till or online checkout, the BNPL firm pays the retailer for you. You then have to pay the BNPL firm back over a few weeks or months, meaning you can spread your shopping costs. Usually, BNPL is interest-free and fee-free but if you miss a repayment and you risk being charged late fees and you could potentially build up debt through it as some people may end up borrowing more than they can comfortably afford to repay. As this style of payment has only come in recently, the older regulations currently in place don't cover it. In a blog post on the Money Saving Expert website posted later that day, Martin first explained how the Government was drafting laws to bring BNL services into regulation which would give borrowers "powerful new rights and protections". This included the ability to request Section 75 refunds and to escalate complaints to the free, independent Financial Ombudsman Service. A Government spokesperson confirmed to the MSE website that "no decisions have been made" at this moment but the Treasury was reviewing){kind=link}
The Money Saving Experts’ plea followed reports over the weekend that the crackdown on the sector could potentially be shelved by the Government
Martin Lewis has urged the Government to press ahead with plans to bring “buy now, pay later” (BNPL)services under regulation.
The Money Saving Experts’ plea followed reports over the weekend that the crackdown on the sector could potentially be shelved by the Government.
Reasons towards the potential shelving are still unclear however Sky News reports that a number of the biggest BNPL players could exit the UK market if regulations are put in place.
Martin Lewis took to Twitter opening his tweet with the phrase “Pls DON’T let this be true”.