The announcement follows Sorcha's ongoing efforts to address the growing debt risk posed by BNPL services. Earlier this year, she raised these concerns in Parliament and held meetings with consumer groups like Which? to advocate for stronger protections.
 
Commenting on the consultation, Sorcha said: "For too long BNPL schemes have been allowed to prey on people struggling financially, luring them into unmanageable debt with little oversight or protection. This is especially concerning for families in Northern Ireland who are already dealing with cost-of-living and energy crises.”
 
"I’ve been consistently calling for these regulations to ensure that BNPL companies can no longer exploit vulnerable people. This consultation is a much-needed step towards putting consumer protection at the forefront.”

Sorcha also stressed the importance of bringing BNPL schemes under the Financial Conduct Authority (FCA), given the nature of the services they provide. She added: "These companies are selling a financial product, and they must be regulated by the FCA to ensure proper oversight. While I understand that BNPL can work well for some, we now have clear evidence that people are using these schemes to buy essential items like food, which is deeply concerning."
 
The proposed regulations will bring BNPL providers under the supervision of the Financial Conduct Authority (FCA), requiring them to assess the affordability of loans and ensuring users have stronger protections when issues arise.
 
The consultation will close in November, with legislation expected to be introduced in 2025.