Our casework experience in Australia shows that buy now pay later (BNPL) debts are causing or exacerbating financial hardship in substantially the same manner as detailed in the Woolard Review.
In Australia, as is the case currently in the UK, BNPL sits outside the laws applying to other credit products. In Australia the industry has developed a self-regulatory code. The code however does not cover all of the industry and is woefully inadequate in curbing the consumer harm that can arise from BNPL.
We urge the UK Government to put in place legislation that provides adequate safeguards.
We are making the same argument to the Australian Government.
Read our full submission (PDF).CALC and FCA Submission to UK Treasury BNPL consultation