What it really means to Buy Now Pay Later
ALMOST one in 10 of us are planning to use Buy Now Pay Later for part of our Christmas shopping, Citizens Advice has found. Out of the 43 per cent resorting to borrowing to help cover Christmas, one in five said they’ll be turning to BNPL. Yet despite the Buy Now Pay Later sector soaring, it remains unregulated. This means people have less protection when compared to more traditional forms of regulated borrowing, such as credit cards and overdrafts. Citizens Advice is calling for the sector to be urgently regulated to make sure consumers are properly protected. Kate Hobson, Consumer Expert at Citizens Advice, said: “Money can often be tight in the run-up to Christmas but it’s still really important not to spend more than you can afford. “If you’re considering Buy Now Pay Later, understand what you’re signing up for, how you’ll make repayments and what happens if you can’t pay on time. “As always, if you’re struggling with any kind of bill, get free, independent advice as soon as possible. Our advisers can help you understand your options and come up with a plan.” If you need to cancel or return items, contact both the retailer and the BNPL firm.
This is because your consumer rights are with the retailer but you have a separate agreement with the BNPL firm to pay for what you buy.
Generally the retailer will refund the BNPL firm, which will refund you, or adjust the amount you owe if you only returned part of an order. If something goes wrong you can complain to the BNPL firm and the retailer.
Again, your consumer rights are with the retailer but your payment agreement is with the BNPL firm.
BNPL firms have different rules on resolving disputes and so check what happens to your payment plan during this time.