The new legislation will bring BNPL firms under the supervision of the Financial Conduct Authority (FCA), requiring them to carry out affordability checks and allowing users to escalate complaints to the Financial Ombudsman.

Ms Eastwood said: “This is a long overdue step to protect people from falling into debt through unregulated lending. Since becoming an MP, I’ve consistently called for BNPL providers to be held to the same standards as other lenders. I have raised the issue in Parliament and have been working closely with consumer groups, such as Which?, to push for stronger regulation. It’s good to see action finally being taken.

“In Northern Ireland, too many families are using BNPL to cover everyday essentials. That’s why proper oversight and fair safeguards are essential. These reforms will help ensure people are treated fairly and given the protection they deserve, but we also need much greater marketing transparency and information about the risks of missed payments and credit checks.

“This legislation is a win for consumers, and I’ll  continue to work to ensure the final rules are robust, enforceable, and work for people on the ground.”