One spender in 12 is using buy now, pay later (BNPL) schemes to shop for everyday essentials such as food and toiletries, the charity Citizens Advice found. However, unlike most BNPL credit, the bank's scheme will be regulated by the FCA, so borrowers will be able to go to the Financial Ombudsman with complaints. UK shoppers spend £6.4 billion a year with BNPL credit, according to consultants Bain & Company. Jane Tully, director of the charity Money Advice Trust, says: 'As buy now, pay later products expand into new areas, including providing the option to buy everyday essentials like food, the need for regulation has grown more urgent. Sarah Coles, personal finance expert at Hargreaves Lansdown, says: 'The real problem with buy now, pay later is that people often don't view it as a form of debt.

Source: Daily Mail March 23, 2022 01:54 UTC