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February 22, 2024

On the web

December 21, 2023

On the web

US ‘Buy Now, Pay Later’ Splurges Raise Holiday Debt Hangover Risk

Reuters

"With U.S. credit card balances at record levels and defaults rising, more shoppers than ever are tapping buy now, pay later services on key shopping days to stretch their budgets. Consumer advocates are raising red flags about cash-strapped shoppers who are adding months-long loans with rates that can top out at 36% - the maximum lenders can charge in many states."

November 10, 2022

On the web

FCA Threatens BNPL Bosses With Jail Time and Fines As Laybuy Nears Profitability

AltFi

“The Financial Conduct Authority ( FCA) has written to ‘buy now, pay later’ (BNPL) execs warning they could face jail time if they fail to comply with financial promotion rules. Although not all BNPL ‘agreements’ are required to be authorised by the FCA, it said that financial promotions do fall within its jurisdiction, and therefore must still comply with “certain regulatory requirements”, in a letter seen by AltFi. As first reported by City AM , the FCA has warned that communication or explainers about products constitute “financial promotions” and so fall under its remit. The letter outlined that financial promotions must be “clear, fair and not misleading”, with the offence for non-compliance carrying a maximum sentence of two years imprisonment, a fine, or both.”

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