TransUnion ‘first UK credit agency’ to accept BNPL data

TransUnion has become the first credit agency in the UK to accept Buy Now Pay Later (BNPL) finance data, according to the organisation.

The organisation said that after extensive research into the flexible payment option, it decided it would include BNPL data within its credit information to “help protect consumers and enable finance providers to ensure that payment plans are affordable and sustainable”.

It explained that the move acknowledges a key recommendation of the Financial Conduct Authority’s (FCA) Woolard Review, which called for stricter boundaries on BNPL services.

“We’re delighted to announce these important changes to the way buy now, pay later products are treated within the credit ecosystem,” said Satrajit “Satty” Saha, chief executive of TransUnion, UK. “We’ve been working closely with prominent providers of buy now, pay later finance to lead the way in line with industry changes and consumer needs.

“Incorporating this data into credit reports will support consumers that are using this type of point-of-sale finance, whilst also ensuring lenders have a comprehensive picture of a borrower’s financial position.”

TransUnion said it would use BNPL data within a range of its products with a phased implementation. The data will begin to appear on consumer credit reports from this summer.

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