High time 'buy now, pay later' deals are regulated

Commenting on the Woolard Review recommendations for the unsecured credit market, Sarah Pennells, Head of Financial Capability at Royal London said:

“It’s high time that ‘buy now, pay later’ deals are regulated, but the Woolard Review covers other key areas where change is needed; including credit reference agencies and access to debt advice. The Money and Pensions Service estimates that the need for debt advice will increase by 60% over the next 18  months1, because of the effects of Covid-19. It’s vital that there’s enough debt advice for people who need it but – crucially – that they have the confidence ask for help as soon as debts become a problem.”

“The Woolard Review also recommends that the FCA resumes its Credit Information Market Study, which the FCA paused last spring2. The data on our credit files is powerful, but many people don’t understand what’s on their file, or how to access their credit report. Unless the credit information market works well for consumers, and they understand their rights, they may be turned down for credit they can afford at the time they most need it.”