FCA secures contract changes for BNPL customers

On 31 October 2023, the UK Financial Conduct Authority published a press release setting out the contract changes to buy-now pay-later products it had secured from both PayPal and QVC.

The FCA’s view was the follow terms were potentially unfair or unclear for customers:

– (for both) the terms dealing with continuous payment authorities; and

– PayPal’s terms on what happens when a consumer cancels their purchase funded by the BNPL agreement.

The FCA also published:

– the undertaking given by PayPal (Europe) S.à.r.l. et Cie, S.C.A.; and

– the undertaking given by QVC UK.

The FCA used its powers under the Consumer Rights Act 2015 to secure the changes.