CAP has responded to the consultation ‘Deferred Payment Credit (unregulated Buy Now, Pay Later): proposed approach to regulation’
Key points:
- CAP welcomes the regulation of Deferred Payment Credit (DPC).
- CAP views the benefits of regulation and Financial Ombudsman complaints procedure as outweighing the negatives of the introduction of these. However, CAP does recognise that there will be some low-income individuals who may face impossible choices on how to afford the essentials if they are no longer able to rely on DPC.
- CAP would encourage the Financial Conduct Authority (FCA) to build an awareness campaign around the risk of illegal money lending and the availability of free debt advice.
- CAP would encourage more of an emphasis on the referral and signposting that firms are required or encouraged to do to free FCA authorised debt advice organisations. This should go alongside ensuring that the language and approach taken within communications are focused on help and support rather than perpetuating any stigma around debt.
