Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy for all consumer deferred payment programmes to come under the regulatory oversight of the Financial Conduct Authority, whether or not an interest charge is payable.
In 2014, the Government transferred regulatory responsibility for the consumer credit market to the Financial Conduct Authority (FCA). In November 2019, the FCA published rules to address consumer harm in the Buy Now Pay Later (BNPL) market. However, not all BNPL products fall under the FCA’s regulatory oversight. Exempt agreements include those where no interest or charges are payable, and where credit is repaid in fewer than 12 months and no more than 12 payments.
The Government carefully considered this exemption at the time of transfer and decided this exemption achieved the right balance between ensuring that burdens on firms are proportionate whilst maintaining the appropriate level of consumer protection.