A credit union boss says regulation of the "buy now pay later" (BNPL) industry is long overdue to protect customers. Bury and Bolton-based Hoot Credit Union CEO, Chris Canham, has reported more of its members are signing up to BNPL deals to "fund Christmas" before facing "unaffordable repayments" in January. The warning comes as the government has launched a consultation on bringing BNPL companies under the supervision of the Financial Conduct Authority (FCA) and applying the Consumer Credit Act to help ensure borrowers receive clear information, avoid unaffordable borrowing and have strong rights when issues arise.
The consultation will close on November 29. Final legislation is expected to be laid in Parliament early next year with the rules taking effect in 2026. Mr Canham said: “Millions of people use BNPL firms when shopping online or in store.
"Managed correctly, they can be a cheap and quick way of accessing credit. "But research shows many users aren't aware that if something goes wrong, you face late fees, and, increasingly, marks on your credit file. "Hoot members tell us that they are increasingly being caught in the trap of signing up to BNPL deals to fund Christmas, and then face multiple and unaffordable repayments in January.
"Online shopping just five or six times for Christmas gifts can accumulate a hefty repayment commitment without realising the consequence of having to repay, or understanding that BNPL is a debt that will appear on a credit report. "And .
