New Buy Now Pay Later (BNPL) Rules: Don't Get Caught Out
BBC News reports on the new regulations for BNPL services, which have been officially regulated since July. This includes stricter background checks on affordability, potentially blocking purchases if you're deemed unable to repay.
Here’s how to avoid being blocked, based on advice from Sara Williams, a former Citizens Advice debt adviser:
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Slow down your purchases: Consider if what you're buying is essential. Postpone non-essential items to prevent high credit limits.
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Be mindful of subscriptions: Cancel services to avoid the trap of relying on BNPL to cover previous payments.
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Seek debt help: Reach out to debt charities for assistance and explore food bank vouchers for essential purchases.
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Avoid further debt: If you're struggling with repayments, seek help early on. Resources like MoneyHelper offer free debt advice and tools to prioritize payments and access benefits.
Key Takeaways:
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BNPL lenders like Klarna and Clearpay now require regulator approval, offering shoppers improved access to refunds and independent complaint rulings.
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New affordability checks could block purchases if you fail the test, so be cautious during the festive season.
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Be mindful of your spending habits and seek help if you're struggling with debt.