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Consumers At Risk Unless FCA Speeds Up 'Buy Now, Pay Later' Regulation

Services pose a threat to consumers without proper supervision

Complyport, a leading compliance and regulatory consultancy, has warned that 'Buy Now, Pay Later' (BNPL) credit, while convenient for consumers, poses risks that will continue without proper awareness and regulation.

Unsecured credit, particularly the BNPL facilities offered via online stores or merchants by the likes of Klarna, Clearpay, LayBuy, PayPal, and Amazon have grown significantly over the last few years. Online retailers have particularly targeted younger age groups in the market for lower cost purchases such as clothing and footwear and similar consumer items.

Paul Grainger, CEO of Complyport Ltd, commented:

“It is an anomaly that BNPL lending has to date gone unregulated. There is a very real danger that consumers may be encouraged to borrow more than they can repay. The financial strains currently experienced in many households arising from COVID, recession, and probable further disruption due to Brexit mean that concerns about the danger of over-extending credit will only increase.

“I welcome the fact that FCA has identified the issue and intends to bring forward proposals to resolve it. However, the challenge is for FCA to move rapidly and decisively to put adequate protection for consumers in place as speedily as possible.”


The FCA this week published the Woolard Review, an examination of changes in unsecured consumer credit and how regulation can support a healthier market.




Notes to Editors:

For media enquiries, contact:

John Kaponi, J7 Communications: +44 787 554 2969 /

1. To arrange an interview with Paul Grainger, CEO of Complyport Ltd, please email or call John Kaponi

2. Complyport is a leading compliance and regulatory consultancy providing bespoke, practical solutions for all manner of regulated firms both in the UK and overseas. Our specialist compliance services expertise can either sit alongside your current compliance teams or, for an independent solution, we can bring our team in-house.

3. Established in 2002, Complyport combines former regulators, industry practitioners and legally qualified individuals to offer our clients an unparalleled, professional team.