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Investing.com -- The UK’s Financial Conduct Authority (FCA) on Friday announced new protections to help Buy Now Pay Later (BNPL) borrowers better navigate their financial lives.
Under the new proposals, BNPL borrowers will gain the right to file complaints with the Financial Ombudsman Service if issues arise with their loans.
The regulatory framework includes requirements for lenders to verify that customers can afford to repay BNPL loans before extending credit.
This affordability check aims to prevent consumers from taking on debt they cannot manage.
Additionally, the FCA is mandating that lenders provide support to customers who encounter financial difficulties.
This measure is designed to assist borrowers who struggle with repayments.
These new protections represent a significant regulatory step for the growing BNPL sector in the UK, which has faced increasing scrutiny over consumer protection concerns.
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