The FCA believes that the new rules will save customers between £40-60 million a year in interest payments.

The rules will prevent companies from charging backdates interest at the end of promotional offer periods.

Classic BNPL offers tend to provide a promotional period, typically up to 12 months, during which customers do not have to make payments and are not charged interest.

However, if the consumer does not repay the entire amount within this period, then interest will usually be charged from the date of purchase.

Gary Rohloff, co-founder of BNPL tech provider Laybuy, told Finextra: “We absolutely welcome these rules coming into force. The FCA is ensuring that consumers are protected from rapacious regimes on things that have already been paid. Coming from a retail background, this isn’t something that I’d want my customers falling foul of.”