Published by: Financial Conduct Authority
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Key Take Aways
The FCA is consulting on regulation for Deferred Payment Credit (DPC), also known as unregulated Buy Now Pay Later (BNPL); regulation will commence from July 2026.
DPC products are interest-free, repayable in 12 or fewer instalments within 12 months, and currently operate outside FCA regulation, posing consumer protection risks.
The proposed regulatory regime aims to improve consumer information, assessment of creditworthiness, and treatment during financial difficulty, relying on existing high-level standards and the Consumer Duty.
The market has experienced rapid growth, expanding from £0.06bn in 2017 to over £13bn in 2024, with approximately 20% of UK adults having used DPC in the previous year.
The FCA plans to introduce a temporary permissions regime (TPR) allowing unauthorised firms to operate until full authorisation, with specific gateways and compliance deadlines.
The regulation...
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