Nearly half of Buy Now Pay Later customers continue to be misled - News

Search News

Results: 1-10 of 328


Inquiry launched examining how high streets can survive the economic and social effects of Covid-19

21 Jul 2020

The Housing, Communities and Local Government Committee has announced a new inquiry to examine how high streets can survive the economic and social consequences of Covid-19.
Read more…

Activate Cycle Academy to start delivering the new Bicycle Mechanic Apprenticeship Standard

13 Jul 2020

Following the recent Government announcement pledging extra investment and funding for businesses hiring an apprentice, Cytech training provider Activate Cycle Academy (formerly ATG Training)... Read more…

Cytech's Training Centres plan to re-open in June

28 May 2020

After 2 months of inactivity within the Cytech workshop training facilities, training providers Activate Cycle Academy, PJCS and South Africa's Torq Zone Academy are re-opening in June following... Read more…

WANTED: Government Support for Retail Owners

6 Apr 2020

The ACT has initiated a campaign to support retail owners with a scheme comparable to theJob Retention Scheme for our employees.
Read more…

Local Bike Shop Day 2020 postponed following retailer vote

31 Mar 2020

As Local Bike Shop Day is a day encompassing the whole trade, the final judgement was given to the bike shops that had signup to take part. Out of all the respondents the overwhelming majority -... Read more…

Indie Retail to Launch New Monthly Newsletter

29 Jan 2020

On Friday 31st January Indie Retail will be launching a monthly newsletter to be sent out to subscribing independent shops.
Read more…

ATG Training launches new brand identity

29 Jan 2020

UK Cytech training provider ATG Training is to become known as Activate Cycle Academy. This name change and rebrand is the final piece of the Activate Learning group takeover which began in 2016... Read more…

Nearly half of Buy Now Pay Later customers continue to be misled

20 Jan 2020

Recent findings show that over 40 per cent of shoppers areunaware that missing payments when using a Buy Now Pay Later service could harm their credit score.
Read more…

4 tips for safe cycling at night

29 Oct 2019

Cycling in the dark does not need to be daunting and can become an enjoyable, even exhilarating, experience when efficient preparations aremade
Read more…

Whistler Adventure School, Cytech and Specialized Bicycle Components Canada to Formalise Partnership

26 Sep 2019

Whistler Adventure School is pleased to announce the enhancement of our bicycle mechanic course to incorporate the internationally recognised Cytech certification, offered through Specialized... Read more…

Back to news menu

Nearly half of Buy Now Pay Later customers continue to be misled

Posted on in Business News , Cycles News

A recent story published in This is Money, Financial Website of the Year included survey findings showing that over 40 per cent of shoppers are unaware that missing payments when using a Buy Now Pay Later service could harm their credit score.

According to Compare the Market, one in five also felt they weren't clearly shown the terms and conditions, again raising more concerns over the increasingly popular payment method.

One company in particular, a popular Swedish finance provider that was previously mentioned by the ACT for misleading a customer and negatively affecting their credit score, has been the cause of concern for many. The firm is incredibly popular in Britain with 6million people using its three ways of paying for items since 2015. It has also begun providing in-store payment options, with 10,000 shops including H&M, Halfords and Schuh.

While the company claims to believe 'in being simple and straightforward in everything we do', This is Money found it difficult to find on its website the fact that your credit score is affected by non-payment on some of its products, something likely reflected in the survey results.

A clear example of this obscurity is under an FAQ section on the website of one of the biggest retailers it provides payment options for - H&M - it responds to the specific question of whether using the Buy Now Pay Later firm affects your credit score with: 'For more information about Klarna's credit check and if it affects your score please contact Klarna directly.'


The company told This is Money in January 2019: 'We're open about our lending policies and credit authorisation processes, and we make sure we stay in regular contact with customers to let them know when a payment is due.

'If after a period of several months we have not received payment, we advise the credit bureau that they have not paid.

'At this point a customer's credit score may be affected.'

The company also said in response to Compare the Market's research: 'Klarna does not report missed payments to credit reference reference agencies in relation to its pay later and pay in three products.

'To date, a customer's credit score has not been impacted by using Klarna's pay later products even if they have failed to pay on time'. It said its financing payment plans were Klarna's only regulated credit product.

Another recent article explains the dangers of the Buy Now Pay Later firm also being heavily promoted by celebrities through Instagram with thousands of young followers. Debt campaigners have branded the celebs "irresponsible".

Martyn James from Resolver said: "It's totally irresponsible for influencers to take cash to plug credit products on their profiles.

"There's a huge difference between plugging an expensive pair of shoes and borrowing beyond your means to pay for them.

"With little to no warnings about the risks, shoppers could find themselves sleepwalking in to debt."

New research also warns that over two million shoppers have damaged their credit scores using Buy Now Pay Later schemes.

Back to news menu

Add a comment

The ACT will not share your email address with anyone and it will not be published on the website.