Millions of families across the UK have been warned by Martin Lewis over the dangers of 'buy now pay later' (BNPL) deals as Christmas approaches. Despite welcoming incoming regulations aimed at controlling the practice, the MoneySavingExpert founder noted that they won't be implemented until January 2026. This means shoppers won't be protected either this Christmas or the next under consumer standards already in place for other financial transactions.
The new rules will address affordability and standard fairness practices, putting an end to the "completely unregulated Wild West" currently characterising BNPL, according to Martin. A free financial ombudsman may mediate in disputes between buyers and sellers but the money guru urged: "It’s important to understand with Christmas coming up and people use buy now pay later a lot, this Christmas and frankly next Christmas you still won’t be regulated.".
"So, be very wary before using buy now pay later at the moment. It can work well for some. But it is unregulated, you do not have the standard consumer protections and this thing called the consumer duty which basically means firms have to treat you fairly.".
Martin initially spoke up when testifying to the Commons Treasury committee in 2020 about the "explosive" growth in BNPL, which even includes people using it to purchase takeaway meals, leaving some individuals unable to repay their debts, reported the Evening Standard. He called on Chancellor Rachel Reeves to tackle the issue. "I was over the moon when the Chancellor rang me yesterday to say ‘we are doing it’," he said on Good Morning Britain.
