Commercial Awareness Compass

The future of buy-now-pay-later schemes

Henry Nelson Case

Henry is a 5 year qualified commercial lawyer with experience on a whole host of commercial contracts, having gained exposure to a diverse range of work through both working in-house and in private practice. Alongside working as lawyer, Henry also creates content on social media – where he strives to promote the importance of mental health and wellbeing in the workplace and challenges toxic corporate behaviours.

Published Thu, 14 Aug

The Financial Conduct Authority has announced plans to bring the UK’s £13 billion buy now, pay later market under its regulatory umbrella. Firms such as Klarna, which let consumers split purchases into interest-free instalments, will face mandatory affordability checks, rules on creditworthiness and access to the Financial Ombudsman. These changes arrive amid concerns that young people are stacking short-term loans without proper safeguards.

Contracts, compliance frameworks and consumer journeys will all need overhauling to meet FCA standards. Will lenders still offer 0% financing for small sums? How will retailers adapt if credit approvals slow at checkout? And what new disputes might land before the Ombudsman?

Register for free to read the full article

Unlock access to exclusive resources! Register to gain insights, study guides, and career tools.

How AllAboutLaw Events work

Discover events

Explore a wide range of legal career events tailored for aspiring solicitors. Whether it's a virtual fair, panel discussion, or skill-building workshop, find the perfect event to suit your career goals.
Schedule and attend

Sign up for upcoming events, manage your schedule, and easily track the events you're attending. Stay on top of your legal career journey with our user-friendly platform.

Register for free to read the full article

How AllAboutLaw Events work

Discover events

Schedule and attend