UK BNPL Affordability Checks Now in Force

Tough new affordability checks for buy now, pay later users took effect across the UK today, covering the £14 billion market.

The Treasury hailed the regulations as delivering a fairer deal for shoppers, but consumer groups warned millions could be excluded and pushed towards unregulated lenders.

The new rules require lenders to conduct thorough creditworthiness assessments before approving BNPL transactions.

The regulations aim to address mounting concerns about spiralling consumer debt in the rapidly growing sector.