LONDON—As CUToday.info has been regular reporting, concerns over consumers getting into financial trouble from buy now, pay later (BNPL) offerings continue to rise.
The latest to sound the alarm is Britain’s Financial Conduct Authority, which has issued a warning that people responsible for “misleading” BNPL advertising could face two years in prison, Reuters reported.
Britain's financial watchdog said it is concerned over firms offering the loans that encourage "impulse buying."
“As Britain's cost-of-living crisis worsens, the Financial Conduct Authority has told so-called BNPL firms and the British Retail Consortium that the benefits of the on-the-spot, interest-free, short-term loans were being emphasized in advertisements without fair and prominent indications of any relevant risks,” according to the report.
Additional Risks Flagged
Other recent reports about BNPL red flags have included:
- A Troubling Sign Begins to Emerge in BNPL Data
- ‘Red Flag’: For Many, BNPL Becoming ‘Borrow Now, Purchase Little’
- Survey Suggests BNPL is Buy Now, Pay (the Piper) Later for Both Consumers and Credit Unions
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