Citizens Advice responds to the announcement of a consultation on the regulation of Buy Now Pay Later.
Matthew Upton, Director of Policy at Citizens Advice, said:
“Buy Now Pay Later borrowing can be like quicksand - easy to slip into and very difficult to get out of.
“Split payments are offered as a temptation at the checkout, but the consequences can be devastating for those who are least able to deal with them. We’ve helped many who have slipped into trouble, including one sent a debt collection letter over a £10 purchase. Another relies on Buy Now Pay Later to buy things such as their children’s school uniform, but cannot afford the repayments.
“Over half of young people who have used Buy Now Pay Later in the last year struggled to make a repayment. The Buy Now Pay Later sector has grown incredibly quickly and we need consumer protections to keep pace. We welcome the Treasury’s commitment to regulate the sector. Now it must be swiftly translated into action.”
Citizens Advice’s Buy now, pay later: what happens if you can’t pay later? report into the sector found:
- 1 in 10 BNPL shoppers have been chased by debt collectors in the last year
- This rose to one in eight young people
- BNPL shoppers were charged £39 million in late fees in the past year