Ministers launch long-awaited consultation on buy now, pay later firms

Government says new rules could help protect 10 million consumers from ‘unconstrained borrowing’

Ministers have promised to clamp down on unregulated buy now, pay later firms and offer stronger protection for consumers, as the government launched a long-awaited consultation on rules to regulate the booming sector.

The Treasury said new proposals would mean buy now, pay later (BNPL) products would be regulated by the Financial Conduct Authority, while consumers would be given the right to have their complaints reviewed by the financial ombudsman.