01 Jul Consumer Protection in Buy Now, Pay Later

Julia Tomasiak

School of Law, Trinity College Dublin, Ireland

E-mail: tomasiak.julia@gmail.com

Abstract

Buy Now Pay Later is a financial product that has revolutionised the financial services market, particularly for a retail consumer. This article will look at BNPL products from the perspective of consumer protection, with a particular focus on the regulation in the EU and UK. I will compare the respective approaches of these two jurisdictions – the integrationist approach of the EU where BNPL is integrated into the mainstream consumer credit regulation, and the more flexible approach adopted by the UK tailored at BNPL risks specifically. It has to be, however, noted that none of these proposals have been implemented yet. Both approaches will therefore have to be reassessed once in force. The article will be divided into three parts. The first part sketches out how BNPL products work, their role and characteristics compared to other types of credit, and the unique risks BNPL poses to consumers. The second part provides a brief overview of current and proposed consumer credit legislation in the EU and UK from a comparative perspective. The third part discusses how effective each of the proposed regulations will be in tackling the risks identified in the first part.

READ THE FULL ARTICLE HERE (Page 35-40)

Keywords: Buy Now Pay Later, BNPL, consumer credit, consumer protection, fintech