The Central Bank allowed the introduction of a limit on purchases in installments
The Central Bank of Russia (CBRF) plans to consider the possibility of setting a limit on the amount of free installments in BNPL services (buy now, pay later — “buy now, pay later”). This information is reported by RBC.
By June 1, 2024, the regulator intends to develop changes in legislation that will regulate the process of purchasing goods and services through such services.
The Central Bank is considering two installment models. The first involves a paid form, which is actually a consumer loan, which will be subject to regulation like any other type of consumer lending. This type of service will be provided by professional lenders, and information about them will be transmitted to the credit bureaus (CBH). However, the market expressed its dissatisfaction with this initiative.
“The second model is free installments. The possibility of providing such a service by specialized installment operators is being considered. In this case, certain requirements will be established to ensure the protection of consumer rights,” explained a representative of the regulator, adding that it is planned to create a register of such operators.
The Bank of Russia noted that one of the goals is to control the growth of debts of borrowers , therefore, the possibility of establishing certain restrictions for transactions under the second model is not excluded.
The regulator did not specify the specific amount, but did not exclude the possibility of transferring information to the BKI if a certain threshold is exceeded.