Buy now pay later


Some customers are being ripped off into paying hidden interest and late payment fees. Buy now pay later seem like a way to having an item of shopping now but not having to worry about payment until up to one year away.

In fact, customers that forget to make the payments on time find themselves being charged extortionate interest and late payment fee.

Back to the Blog!

According to the Finance & Leasing Association stores and online credit debt has risen by £500 million in the last three years. Complaints about catalogue debt which includes the buy now pay later deals has risen by 75% on the prior year to 1640, according to the Financial Ombudsman Service. Customers are often not aware that if they miss the payment date they will be charged interest over the entire period that the purchase was made, not just the month that the payment was late. A spokesman for StepChange debt charity stated that sometimes people are not aware they have entered into a credit agreement and that late payment fees can be added. Whilst companies may state 21 days to pay and no fees, it does not fully explain the costs if the payment is not received on time. The late payment charges are often written in the small print, which is not obvious to the customer at the time of purchase. Companies are being asked to change their wording on websites to make it much clearer for customers to be aware of the possible charges if the payment is made later than agreed. Some companies are making up to a third of their income from interest and fees, which are not being clearly advised to customers. Before purchasing an item with a deferred payment option make sure you are aware of any hidden costs or charges, and more importantly remember to pay for your good on time.

Back to the Blog!