Firms offering buy now, pay later payment options in the UK will no longer be allowed to backdate interest charges when credit is not repaid in full on time, as authorities move to simplify a payment method that is swelling in popularity.
The Financial Conduct Authority (FCA) unveiled final rule changes for the sector on Wednesday — the latest in a series of reforms on high-cost credit offers — after putting out proposals for industry feedback late last year.
The changes are limited in scope, but the regulator said it hopes they will prevent consumers being hit with massive interest charges at the end of an initial interest-free repayment period.
Request a Free Trial
As a trusted source of regulatory intelligence for the global payments industry, we enable organisations to manage the growing volume and velocity of regulatory risk with confidence, empowering more informed and effective decision making, in an efficient and cost-effective way.Take a Trial