Will new 'buy now, pay later' protections help everyone?
Summary
This episode of Witch Money examines new UK regulations for Buy Now, Pay Later schemes, which now align with credit card rules to offer stronger consumer protections. Host James and money editor Grace Witherden detail changes like mandatory affordability checks, Section 75 liability, and access to the Financial Ombudsman Service. Later, Kate Pender from Fair For All Finance discusses concerns that stricter rules may push vulnerable borrowers toward illegal lenders, highlighting the need for better financial inclusion and alternative credit options.
Topics discussed
Introduction to Buy Now, Pay Later and new regulations
Consumer harm and the push for regulation
Why BNPL became popular and misunderstood
New affordability checks for every purchase
Clearer information at checkout
Section 75 protections for BNPL users
Access to Financial Ombudsman Service
Support for missed payments and debt advice
Limitations: Existing agreements and provider status
Kate Pender on risks to BNPL access
BNPL as a symptom of low financial resilience
The danger of illegal lending and loan sharks
Need for graceful off-ramps and consolidation
Fair For All Finance initiatives and pilots
Future of financial inclusion and conclusion
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