FCA Bans Backdated Interest In ‘Buy Now Pay Later’ Market

Law360, London (June 12, 2019, 12:57 PM BST) -- The Financial Conduct Authority said Wednesday it is banning retailers from charging backdated interest on balances that consumers have partially paid off after they buy goods using “buy now pay later” offers, in its latest attempt to rein in the high-cost credit market.

The new rules, due to come into force in November, will permit businesses offering deferred payment deals to charge backdated interest only on the amount that a customer has yet to pay off for a product at the end of a promotional period, the City watchdog said. The restriction will save consumers up to £60 million ($76.4 million)...

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