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22 Mar 2024

Rob Brown, co-director of Dalby Forest Cycle Hub, a not-for-profit hire scheme has been nominated for the Tourism Superstar 2024 award, run by VisitEngland.

21 Mar 2024

ACS (The Association of Convenience Stores) and the Federation of Independent Retailers (The Fed) have both welcomed a new report published by the Association of Police and Crime...

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As reported by Healthstores UK, new data contained in the 2024 Soil Association Organic Market report shows that independent retailers delivered an impressive 10% growth in 2023, with...

21 Mar 2024

An independent bottle shop and bar in Cheltenham has been named as the UK's Independent Beer and Wine Retailer of the Year 2024 at the Drinks Retailing Awards. 

21 Mar 2024

A number of organisations, including Bira (the British Independent Retailers’ Association), other trade associations, BIDs and unions have met with officials from the Welsh Government to...

21 Mar 2024

The British Independent Retailers’ Association (Bira) has reacted to data released by PwC and the Local Data Company exploring the state of the UK retail landscape.

6 Mar 2024

The Greeting Card Association has reacted to a BBC Panorama programme lifting the lid on Royal Mail management prioritising parcel delivery over letters, which it says are in contradiction of...

4 Mar 2024

Pop star Kate Bush has been announced as an ambassador for this year's Record Store Day, on 20 April.

4 Mar 2024

The British Book Awards has announced its shortlist for Independent Bookshop of the Year. 

4 Mar 2024

The ACT is happy to confirm the date for Local Bike Shop Day 2024 as Saturday 4 May, the weekend of the early May Bank Holiday.

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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.

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