WiredGov Newswire (news from other organisations)
Buy Now Pay Later rules won’t stop people being hit by these unexpected costs, says Citizens Advice
The Financial Conduct Authority’s rules on Buy Now Pay Later borrowing won’t stop people being hit by unexpected costs, says Citizens Advice.
Buy Now Pay Later borrowing includes catalogue credit, store cards and retailers that offer finance at the point of sale (which can be in store or online).
The national charity helped over 25,000 with problems due to catalogue and mail order products last year. These debts are the second most common high-cost credit issue, after overdrafts, Citizens Advice helps people with.
The charity supports more people with catalogue and mail order debts than those with other high-cost credit debt due to doorstep loans, payday loans or rent-to-own. These other forms of credit have been the subject of much greater investigation by the FCA.
The most common problem faced by people Citizens Advice helps with catalogue and mail order debts is dealing with debt repayments. This accounts for over 80% of the problems that are brought to the organisation.
The use of these deals is more prevalent among people who are vulnerable due to their health or financial situation. Citizens Advice figures show:
- 54% live in social housing
- One in three (33%) are single parents
The charity provided evidence to the regulator’s Buy Now Pay Later consultation in March 2019.
Gillian Guy, Chief Executive of Citizens Advice, said:
“Buy Now Pay Later borrowing can be a useful way for people to spread the payment for an item. But many do not fully understand the repayment terms involved in these deals.
“One of the problems we see is how interest is backdated at the end of the “interest free” period. People can get into trouble as they don’t realise charges can be applied in this way
“The new rules won’t stop people being hit by these unexpected costs on unpaid amounts. To better protect people, the FCA should go further and only allow firms to charge interest once the promotional period ends.”
Notes to editors
- Citizens Advice includes the national charity; the network of independent local Citizens Advice charities across England and Wales; the Citizens Advice consumer service; and the Witness Service.
- Citizens Advice is the statutory consumer advocate for energy and post. We provide supplier performance information to consumers and policy analysis to decision makers.
- The Citizens Advice Witness Service provides free, independent support for prosecution and defence witnesses in every criminal court in England and Wales.
- Citizens Advice offers Pension Wise services at 500 locations in England and Wales.
- Citizens Advice’s services are free, independent, confidential and impartial, and available to all regardless of race, gender, disability, sexual orientation, religion, age or nationality.
- To get advice online or find your local Citizens Advice, visit citizensadvice.org.uk
- For consumer advice, call the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 to talk in Welsh.
- We helped 2.6 million people face to face, by phone, email and webchat in 2017-18. For service statistics see our monthly publication Advice trends.
- Citizens Advice staff are supported by over 23,000 trained volunteers, working at over 2,500 locations in England and Wales.
Latest News from
WiredGov Newswire (news from other organisations)
Financial Reporting Council v Sports Direct International plc19/02/2020 14:25:00
The Court of Appeal has partially allowed Sports Direct’s appeal against the judgment of Mr Justice Arnold in relation to the provision of privileged material to the FRC.
CBI responds to new UK immigration system19/02/2020 13:25:00
Carolyn Fairbairn, CBI Director-General, said: “Getting a new immigration system right on day one will be critical for economic growth and the UK’s global reputation as it forges a new path outside the EU.
TUC: Government must ban zero-hours contracts19/02/2020 12:25:00
TUC General Secretary Frances O’Grady commented on figures published yesterday (Tuesday) by the ONS which show a record 974,000 people in employment on a “zero-hour contract” in their main job – representing a record 3.0% of all people in employment
Unite: Health visitor outcry as services for vulnerable Greenwich mums face axe19/02/2020 11:25:00
Vulnerable young families in the London borough of Greenwich face being left with inadequate support because of plans to dissolve the area’s Family Nursing Partnership (FNP) programme, Unite, the union, warned yesterday (Tuesday 18 February).
Welsh language services available at Companies House18/02/2020 16:05:00
We offer a Welsh language service for all our customers who want to communicate with us in Welsh.
TUC: Hywel Dda University Health Board signs TUC’s Dying to Work Charter18/02/2020 13:15:00
TUC Dying to Work Charter protects rights at work for those facing a terminal illness. Campaign began in 2016 following Derbyshire sales manager losing her job after cancer diagnosis.
LGA responds to funding announced for domestic abuse refuge services18/02/2020 12:40:00
Cllr Simon Blackburn, Chair of the Local Government Association’s Safer and Stronger Communities Board, responded to money announced by the Government to help fund domestic abuse refuge services
FRC advice to companies and auditors on coronavirus risk disclosures18/02/2020 11:15:00
The Financial Reporting Council (FRC) has today published guidance for companies on disclosure of risks and other reporting consequences arising from the emergence and spread of Coronavirus (COVID-19).
CIPD - Public sector employment confidence at 12-year high with women set to benefit18/02/2020 09:40:00
An increase in hiring intentions among public sector employers looks set to support further employment growth in the UK, according to the latest Labour Market Outlook report from the CIPD and The Adecco Group
UK Space Agency: First Solar Orbiter instrument sends measurements17/02/2020 14:05:00
First measurements by a Solar Orbiter science instrument reached the ground on Thursday, providing a confirmation to the international science teams that the magnetometer on board is in a good shape following a successful deployment of the spacecraft’s instrument boom.