Citizens Advice responds to new Buy Now Pay Later protections

25th
Oct
Citizens Advice responds to new Buy Now Pay Later protections

October 25, 2024

Responding to the Treasury announcement that new protections will be brought in for the Buy Now Pay Later sector, Dame Clare Moriarty, Chief Executive of Citizens Advice, said: 

“We’ve long called for regulating the Buy Now Pay Later (BNPL) market and are glad to see the government making this a priority.

“We know the difference this can make to so many people’s lives. Compared with two years ago, our advisers are helping more than twice as many people with a BNPL issue. Many are struggling to repay credit they can’t afford or falling behind on essential bills or needing emergency support, like food bank vouchers.

“Proper regulation can prevent this spiral. The Financial Conduct Authority (FCA) must act swiftly to set rules that protect consumers from unaffordable borrowing once the necessary legislation is in place.”

Additional information: 

  • In 2024 so far, we have helped 4024 people with a BNPL issue. This is more than double the amount of people we helped in the whole of 2022 (1595 people).
  • In 2024 so far, we have already helped 44% more people than we helped with a BNPL issue in the whole of 2023 (4024 against 2802 people in 2023).
  • Most of those we have helped (79%) with issues relating to BNPL are facing difficulties dealing with debt repayments.
  • Around 1 in 5  (21%) of those who have come to us with a BNPL issue have also needed a food bank referral or other charitable support.

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