{"id":39179,"date":"2025-02-04T06:15:57","date_gmt":"2025-02-04T06:15:57","guid":{"rendered":"https:\/\/www.zopa.com\/retail-finance\/retail-finance\/?post_type=new-retail-finance&p=39179"},"modified":"2025-02-24T11:03:48","modified_gmt":"2025-02-24T11:03:48","slug":"whats-the-difference-between-regulated-and-unregulated-finance","status":"publish","type":"new-retail-finance","link":"https:\/\/www.zopa.com\/retail-finance\/retail-finance-explained\/whats-the-difference-between-regulated-and-unregulated-finance\/","title":{"rendered":"What’s the difference between regulated and unregulated finance?"},"content":{"rendered":"

There are a whole range of Retail Finance options to choose from for your business. However, these can ultimately be grouped into two categories: regulated and unregulated finance. <\/span>\u00a0<\/span><\/p>\n

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Unregulated finance<\/span>\u00a0<\/span><\/h3>\n

 <\/p>\n

The word \u2018unregulated\u2019 might be ringing some alarm bells. However, most of the common finance options we see at checkouts such as Klarna and PayPal\u00a0plans come under this umbrella. <\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

Unregulated finance refers to credit options with a duration of 12 months or less. For example, \u2018Buy Now, Pay Later\u2019, \u2018Pay in 6 Months\u2019 or \u2018Pay in 3\u2019 are all unregulated by the Financial Conduct Authority. <\/span><\/p>\n

 <\/p>\n

Obviously, finance providers offering these options still need to comply by legal guidance pertinent to their sector, as well as any trading standard practices that may apply to them. However, if things should go wrong, the FCA wouldn\u2019t have any jurisdiction to intervene and would instead suggest other channels of mediation.<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Regulated finance <\/span>\u00a0<\/span><\/h3>\n

 <\/p>\n

This refers to finance offerings over 12 months. Longer-term finance, whether its interest bearing or interest free, is governed by the Financial Conduct Authority. <\/span><\/p>\n

 <\/p>\n

This means that any finance providers and merchant partners offering finance need to adhere to strict guidelines around financial promotions, treating customers fairly, and risk and compliance.<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Which is best for my business?<\/span>\u00a0<\/span><\/h3>\n

 <\/p>\n

If you want to offer customers a competitive range of finance options, you\u2019d ideally want both options available. For example, maybe customers only want 3 or 6 month options, while others might prefer to spread the cost for longer (say, up to 60 months). <\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

If you\u2019re concerned about any negative impact on your customers as a result of offering unregulated finance, choose a finance provider like Zopa who is already licensed by the Financial Conduct Authority. We follow FCA guidance across both our regulated and unregulated finance journeys, ensuring customers are always treated fairly and can access safe and responsible lending offers. <\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

There are a whole range of Retail Finance options to choose from for your business. However, these can ultimately be grouped into two categories: regulated and unregulated finance. \u00a0 \u00a0 Unregulated finance\u00a0   The word \u2018unregulated\u2019 might be ringing some alarm bells. However, most of the common finance options we see at checkouts such as […]<\/p>\n","protected":false},"featured_media":0,"parent":0,"menu_order":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-39179","new-retail-finance","type-new-retail-finance","status-publish","hentry"],"acf":[],"yoast_head":"\nWhat's the difference between regulated and unregulated finance? - Zopa Finance<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What's the difference between regulated and unregulated finance? - Zopa Finance\" \/>\n<meta property=\"og:description\" content=\"There are a whole range of Retail Finance options to choose from for your business. 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