Online shoppers warned off ‘buy now, pay later’ schemes

RETURNS policies by some online retailers are flouting consumer law, an investigation has found.

Consumer group Which? found scores of merchants breaching rules with buy now, pay later schemes.

It puts shoppers at risk of losing money if they want to send back unwanted or faulty goods.

Which? is calling on 170 retailers listed on Klarna, Clearpay and Laybuy’s apps or websites to change their returns policies. Some merchants are giving less than the 14-day limit to cancel online orders.

It should be 30 days for faulty goods while shoppers should not be charged for returns.

Which? warned people to beware of buy now, pay later, which is a fast, easy way to pay. But, as with debit cards, it will not give the same consumer protection as paying over £100 with a credit card.

Which? says buy now pay later should be regulated. Klarna said: “We support regulation.”