New Buy Now Pay Later (BNPL) Rules: Avoid Being Caught Out
BBC News reports on the recent changes to BNPL regulations and offers advice on how to navigate these new rules.
If you've used BNPL since summer, you've likely faced stricter background checks. These checks are part of the official regulation that came into effect in July, ensuring more access to refunds and independent complaint rulings. However, they can also result in account closures or reduced borrowing limits.
Here are four tips from Sara Williams, a former Citizens Advice debt adviser, to help you avoid being blocked:
- Slow down your purchases: Is what you're buying essential? Can you postpone it?
- Be mindful of your purchases: Avoid buying multiple, non-essential items that might require a high credit limit.
- Cancel subscriptions: Escape the trap of relying on BNPL for recurring expenses.
- Seek debt advice: Reach out to debt charities for help and access to benefits if you're using BNPL for essentials.
Proactive measures are crucial if you're struggling with repayments. The MoneyHelper website offers free debt advice and tools to help you manage your finances. Be wary of unproven debt solutions advertised online.