UK purchase regulator now, pushing companies later like Clars and confirmation

On Monday, the UK government set proposals to submit short -term loans under official rules, as it looks to the garbage on the “Wild West” to buy now, and pushed the sector later.

Fintech Companies like Klarna and block Afterpay has flourished by providing interest-free financing on everything from fashion and tools to food delivery operations at the same time, raising concerns about the ability to withstand costs. The space is very competitive with the United States player to be sure Launch in the United Kingdom last year only.

City Minister Emma Reynolds said in a statement on Monday that the new rules of the United Kingdom were designed to address the feeling of “Wild Wes” in Buy Now, and later pushed (BNPL), adding measures “will protect shoppers from debt traps and give the certainty that he needs to invest and create jobs.”

Under the UK’s proposals, BNPL companies will be asked to conduct submitted tests to ensure that people can pay what they borrow and make it easier for customers to reach the recovered amounts.

Consumers will also be able to transfer BNPL complaints to the Financial Grievance Secretary, a service established by Parliament in the United Kingdom to settle disputes between consumers and financial services companies.

The rules are expected to enter into force next year, according to the government.

Clarna said that she has long supported calls to bring BNPL to the organizational fold. “It is good to see progress in the organization, and we look forward to working with FCA on the rules of consumer protection and encouraging innovation,” CNBC spokesman told CNBC via email.

“It will give the regulations of clarity and consistency to the sector, putting a fixed operating environment and compliance criteria for all service providers,” Clearpay spokesman, Affay arm in the United Kingdom.

“This will also create a more sustainable basis for the BNPL future as it continues to grow as a daily payment option for consumers.”

During the purchase now, companies later expressed their public support for the organization, many were concerned about the application of organizers on outdated bases on their business models. Consumer credit law, which regulates lending and borrowing in the UK, has been present for more than 50 years.

For its part, the government said it is planning to adapt a consumer credit law to allow a recent modern framework that reflects how people borrow today. “

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