EALING Southall MP, Virendra Sharma has joined over 70 MPs from across Parliament to call on the Government to protect consumers and regulate the Buy Now Pay Later (BNPL) industry.

On Wednesday, January 13 MPs debated New Clause 7 to the Financial Services bill, which requires the regulation of the BNPL industry, a form of credit that has boomed during lockdown.

Recent research from Comparethemarket.com shows BNPL schemes are being used 35% more often now than before the pandemic.

27% of users state this was because they could not afford to make the purchase outright.

BNPL companies allow consumers to spread payments over several weeks and have been growing in popularity during the pandemic as a way to manage the cost of buying online.

Currently these companies don't have to abide by Financial Conduct Authority rules due to a regulatory loophole because they don't charge interest.

Speaking about the issue Mr Sharma said: "With one in four shoppers using BNPL companies in the run up to Christmas, it is vital we act before this becomes another Wonga style scandal.

"These companies make it easier to overspend online because the costs appear lower as they are spread out - yet with furloughing and redundancies growing what seems affordable in one month may not be in the next.

"Right now consumers can't even complain to the Financial Services Ombudsman about these companies as they aren't covered by credit laws.

"That's why I'm joining MPs from every party calling for the Financial Conduct Authority to step in before it is too late and regulate these firms to protect consumers from racking up unaffordable debt."

Martin Lewis, founder of MoneySavingExpert.com added: "BNPL shouldn't be sold as a lifestyle choice, something cool, or a new high-tech way to pay.

"It should be seen for what it is – a debt."