Love Britney

Main Menu

  • Home
  • American singer
  • American songwriter
  • Music video
  • Music hits
  • Music industry

Love Britney

Header Banner

Love Britney

  • Home
  • American singer
  • American songwriter
  • Music video
  • Music hits
  • Music industry
Music industry
Home›Music industry›Martin Lewis calls for crackdown on buy-now, late-pay businesses that “target under 30s”

Martin Lewis calls for crackdown on buy-now, late-pay businesses that “target under 30s”

By Elisabeth J. Bruner
March 9, 2021
0
0

Companies like Klarna – the world’s largest buy it now and pay later provider – allow buyers to purchase items interest-free, with no fees or charges. However, experts say they are targeting those under 30 and are going into a lot of debt.

Lewis told MPs it could be the next payday loan scandal (

Image: Ken McKay / ITV / REX / Shutterstock)

Martin Lewis has warned of an “explosion” of buy-now, late-pay businesses that “target those under 30.”

The consumer expert said the government must take action on concerns that many people are falling into debt.

Speaking to the House of Commons select committee, Lewis said regulation is urgently needed against payment providers who allow you to buy items on credit and pay for them later.

“It is absolutely the fastest growing form of credit and it is for people under 30. And if you forgive me, most decision makers are not under 30 and it has gone under. radar. “

Companies like Klarna – the world’s largest buy-it-now and on-payment provider – allow buyers to purchase items without paying upfront, often without interest or fees.








Incredibly attractive shopping model allows customers to spend without having to have money in their bank account
(

Picture:

Getty)





Two million Britons already hit by Klarna-style ‘buy now, pay later’ programs




Dangerous new payment options already used by millions of buyers



They also offer a “try now, pay later” service that allows the customer to purchase items and return unwanted items without paying the full bill.

The incredibly attractive shopping model means that customers can spend without having to have money in their bank account.

And it works.

Klarna alone has almost 10 million customers in the UK and opens 95,000 accounts per week. Globally, it has 85 million customers and was recently valued at around £ 8 billion.

“The advertising is done by influencers on Instagram, where they push the wellness hashtag Klarna. It’s fundamentally inappropriate for a credit product,” Lewis said.

The consumer expert warned that regulation could be “too late” with millions of buyers already registered on the platforms.







Online retail giant Asos is a big supporter of the buy now, pay later model




My new Xbox subscription was unsuccessful – so why do I have to pay £ 25 per month for it?



“My problem is, just like with payday loans, it will be too late. It is unregulated, with no control in both product design and communications. When people have a problem – and often it works quite well – there is no mediator. can go, because it is not regulated. I would ask for maximum speed to get this through the regulatory environment. “

But Klarna rejected suggestions that he is targeting vulnerable young adults.

“As far as targeting under 30s is concerned, this is inaccurate,” a spokesperson said.








It allows buyers to buy now and meet the costs later
(

Picture:

ASOS.com)




Get the latest financial tips, news and help straight to your inbox – sign up at mirror.co.uk/email

“Klarna is for anyone who appreciates convenience and wants to spread the cost of shopping, without incurring a fee. The average age of a Klarna customer is 33 and our fastest growing demographic is Generation X – people between the ages of 40 and 54. “

The company said Klarna is a fully licensed bank, but that “not everyone in this industry is.”

Other providers in the UK include ClearPay and LayBuy, which also allow buyers to buy and pay later.

Klarna, founded in Stockholm in 2005, said it fully supports “appropriate regulation” and has engaged with the Financial Conduct Authority on the subject.

What happens to your Buy It Now and Pay Later Debt if a store goes bankrupt?








Topshop is a strong promoter of the buy now, pay later model
(

Picture:

REUTERS)





Topshop now only accepts gift cards on 50% of your order amid Arcadia collapse



Arcadia, one of the biggest promoters of buy-now and late-pay businesses, went into administration earlier this month, raising questions about buy-now and late-pay debts – especially for those who have pending orders.

Martyn James of the consumer website Resolver.co.uk says it is a “complicated” situation.

“Technically, your contract is with the company providing the credit. This is a whole new area of ​​retail and bankruptcy, so what happens next remains to be seen. But here’s what should. happen.

“If you are using a ‘try before you buy’ credit where you have 14 or 28 days to try the merchandise before returning or purchasing it, contact the retailer immediately to let them know your intentions. Then speak to BNPL to confirm that you are “returning or keeping the item (s).” Ask them for their advice on returning the goods, ”he said.

“If you pay in installments but don’t pay interest, contact BNPL to find out what happens next.

“Technically you have the goods and your commitment to pay for them remains so things should go on as usual. The debt won’t go away with the retailer, I’m afraid.

“If you have a credit contract that charges interest, you should continue your payments as usual and speak to BNPL if you have any questions about the contract.”

Related posts:

  1. Embarrassing questions about debt
  2. Six Ways to Make Sure You Keep a Good Credit Score
  3. Can banks offer an alternative to payday loans? Local lenders aim to attract the ‘underbanked’ | Economic news
  4. Insulin co-payment could be capped at $ 30 under proposed Utah law
Tagspayday loans

CATEGORIES

  • American singer
  • American songwriter
  • Music hits
  • Music industry
  • Music video

RECENT POSTS

  • Leather Handbags Market – Industry Trends and Forecast to 2025
  • 6 BEST PAYDAY LOANS ONLINE | TOP NO CREDIT CHECK LOANS WITH GUARANTEED APPROVAL | DIRECT LENDERS
  • George Michael preferred music to fame. The Doc he did too.
  • Interview: Production designer Mylène Santos talks about the music videos that inspired “Girls5Eva”
  • Billie Eilish to perform at Singapore’s National Stadium in August

ARCHIVES

  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • March 2021
  • Privacy Policy
  • Terms and Conditions