LONDON, June 12 (Xinhua) -- Britain's Financial Conduct Authority (FCA) announced on Wednesday that it will launch new rules in the Buy Now Pay Later (BNPL) market to reduce the harm suffered by consumers who buy products using BNPL credit offers.
The new rules, which will be implemented on November 12, forbid firms from charging backdated interest on money that has been repaid by consumers during the BNPL offer period.
Meanwhile, firms under the new rules must provide clear information to consumers about BNPL offers, which are required to be more balanced and appropriately indicate the risks.
The changes "are intended to simplify these products and make it easier for consumers to make informed decisions," said Christopher Woolard, executive director of strategy and competition at the FCA.
Woolard stated that the FCA expects the overall package of measures "will save consumers around 40-60 million pounds (about 51-76 million U.S. dollars) a year and tackle the harm we identified in this market."
The BNPL is an interest bearing option that allows consumers to delay their payments for desired products.
