The Financial Conduct Authority has today issued a statement on changes made to contract terms by four ‘Buy now, pay later’ firms, including voluntary refunds on late payment fees.

Joanna Elson CBE, chief executive of the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said:

“This new intervention from the FCA on ‘buy now, pay later’ is welcome and shows again that the regulator is prepared to take action to protect consumers.

“These voluntary changes should not distract, however, from the need for full regulation of ‘Buy now, pay later’ products as soon as possible. As the popularity of these products continue to grow, it is crucial that they are held to the same standards as other forms of credit, including properly assessing whether customers can afford to repay in the first place.

“Anyone worried about their finances should seek free debt advice from a service like National Debtline as soon as possible.” 

National Debtline offers free advice at www.nationaldebtline.org.