Guru Martin Lewis issued the money providing a flagrant warning to the British with financial hardships seized by “Buy Now products, and later pay”-following the government's decision to tighten the regulations
Shoppers with financial hardship are urged to survive “cautious” from the “Buy Now products” and later pay (BNPL) before the large repair. Whether you are asking for ready -made meals on Friday night, or ZARA to get a new dress – or buy a new dishwasher after you finally mobilize – you may have noticed the option to postpone your element.
By not having to take the financial strike immediately in their shopping splash, BNPL companies have become everywhere in recent years. Sites like Klarna have now achieved 100 million amazing users, attracting Britons who want to publish their payments for several months, or even years.
Although the service may be the lifeline that affects the need for those who struggle with their money, consumer protection remains doubtful. This week (Monday, 19 May) the government submitted legislation in Parliament seeking to regulate BNPL products under law – giving authorities to the FCA to enforce rules.
Read more: The British issued an urgent warning of 50p and asked now to provide 1100 pounds for the summer
However, the minute details of the legislation have not yet been confirmed, and the new organization will not enter into force until 2026. Martin Lewis has warned the British seduced by BNPL products against remaining cautious about the financial impact that could be it.
Martin said: “This is not about the expulsion of BNPL, it is related to making it safer,” Martin said. “BNPL can be useful, allowing those who need to spread payments to buy a necessary budget, such as a plumber, to do this free of interest. However, it has been sold as a lifestyle option, not a debt, and payment of instincts or even fast food. Many are in a problem with multiple BNPL plots, which leads to damage and balance damage.”
Buy now pay later – what is changing
While it is still under discussion, the main changes offered by the government include “clear and accessible information about the risks involved.” This may make shoppers twice before the option automatically for the BNPL provider. Companies can also be obligated to operate the ability to withstand costs on consumers to ensure that they can already bear payment costs.
“This will apply to the elements that cost more than 100 pounds, but not more than 30,000 pounds, as is the case with credit cards now.” “This means that the BNPL provider will be jointly responsible with the retailer if anything wrong happens.”
Finally, if you complain to BNPL and have not received a satisfactory response, you may soon escalate your complaints to the service of the Financial Grievance Secretary. This will make it easier for those who are truly recovered to ensure that their money is restored.
“The organization means that companies must be public as debts, and they have appropriate rules for the ability to bear costs, and it will allow people to go to the service of the financial grievance secretary if things get off wrong,” explained the teacher who saves money. “However, it does not come until 2026, so people still have to maintain a level of caution until then.”
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She praised the advice of citizens to apply for the implementation of the great reform, describing it as a “decisive step” towards protecting shoppers. “For a long time, people are exposed to debts that cannot be affected by the BNPL sector, which works in a gray area,” said Tom McKenz, director of politics at the advice of citizens.
“For some, this had severe consequences. Many people are struggling to pay the credit they could not bear, and failure for basic bills and often need emergency support, like the dining bank vouchers.”
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