Firms such as Klarna to be required to do affordability checks, in effort to protect consumers from ‘cycle of debt’

Shoppers who use “buy now, pay later” loans are to get new safeguards against unaffordable borrowing and credit card-style protection for their purchases, under rules outlined by the UK government.

However, campaigners have questioned why the BNPL changes will not take effect until 2026, warning that consumers need to be “wary” in the meantime.