ao link
0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter
Intelligence, Insight and community for responsible professionals in credit

Which? calls for full regulation of buy now, pay later firms 

Which? is calling for buy now, pay later firms to be fully regulatedas its new research finds “concerning” industry practices encourage people to spend more than they planned.

The consumer choice firm’s research suggests that buy now, pay later firms, such as Klarna and ClearPay, use “pushy” marketing strategies and features such as express checkouts, which drives people to overspend and fall into debt.

 

The research conducted by Which? found that nearly a quarter (24%) of buy now, pay later users spent more than they planned to, and one in 10 (11%) users reported they incurred late charges by paying this way.

 

The research also found that a quarter of users (26%) said they had not planned to use this type of payment option until it popped up at checkout, while two in 10 (18%) said they used BNPL because they were offered a discount to do so.

 

A Klarna spokesperson said: “Klarna is a fully licensed bank and offers a number of products already regulated by the FCA, so we already operate to very high regulatory and operating standards, which we apply across all out products.

 

“Consumers deserve the highest protections no matter the provider or product they choose and regulation in the UK may now be the best means to achieve that. That’s why we fully support appropriate regulation which meaningfully improves consumer outcomes across the sector.”

Please login to continue reading this article.

Not a member?

Become a member

FREE registration. No credit card required

Register now
  • Stay up-to-date with industry news and appointments
  • Hear about events first
  • Read 1 free Premium article per month

Become a premium member

From as little as £3.48 per week

Become Premium
  • All the perks of a standard member plus:
  • Access to the entire Credit Strategy website
  • 12 months subscription to Credit Strategy Magazine
  • 25% discount to all conferences
  • Exclusive access to Premium Member only roundtables
  • 50% off award entry fees

GET THE LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

Phillips & Cohen launches new data management platform

Phillips & Cohen launches new data management platform

Women in Credit 2021 shortlist confirmed

Women in Credit 2021 shortlist confirmed

Hurricane Energy net free cash position "proves liquidity" 

Hurricane Energy net free cash position "proves liquidity" 

Upcoming events

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group