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Bad Credit Loans Online – Love Island Stars ‘Promote Buy Now, Pay Later Businesses That Lure Young People Into Debt’
Love Island stars are using their social media to promote “buy now, pay later” businesses accused of luring young people into problematic debt.
They hooked up fast fashion brand Boohoo with the words “buy now, pay later with Klarna”.
Millions of people use the “buy now, pay later” services run by Klarna and rivals Clearpay and Laybuy to spread payments without paying interest.
Since there is no credit check sites such as Greendayonline believe buyers are more likely to spend what they cannot afford.
Martin Lewis, of MoneySavingExpert.com, said: “There has been an explosion in Loans to Buy Now, Pay Later (BNPL) in recent years, often targeted at young people, pushed through Instagram and social media, like s ‘it was a form of lifestyle therapy.
(Image: ITV / REX)
“This is not the case. It is debt. In fact, it is the fastest growing form of credit in the UK and regulation is crucial. ”
Surveys show that around 90% of transactions are for clothes and shoes, and 75% of users are under 36.
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Buyers’ debts can be passed on to debt collectors and lead to black marks on credit scores if they don’t pay off.
(Image: ITV)
(Image: instagram.com/lovefromreyn)
Mr Lewis added: “The BNPL is not as bad as the payday loan – used properly, it is interest free.
However, it was sold to retailers as an easy way to get people to spend more. ”
Last week, the Financial Conduct Authority announced a crackdown as its popularity rose in the pandemic.
The FCA will require suppliers to perform affordability checks before lending and will ensure that customers are treated fairly.
The government says it will legislate as soon as possible.
(Image: Getty)
Financial activist Alice Tapper said: “It is reassuring that the FCA has identified the need for action.
“BNPL is often a teenager’s first encounter with credit. Buyers as young as 18 get promoted for these products by influencers, with risk-free wording. ”
Klarna has 10 million customers in the UK, with brands such as H&M, River Island, ASOS and Marks & Spencer offering it at checkout.
(Image: Alamy)
The company said, “We fully support the modernization of regulation and supervision.
“Consumers are choosing alternative payment methods and we expect the industry to continue to grow. It is essential that regulation be fit for purpose, reflecting the digital nature of transactions and changing consumer preferences. ”
Amy Hart, 27, Olivia Bowen, 27, India Reynolds, 30, Lucie Donlan, 22, and Belle Hassan, 22, have been contacted for comment.
Bad Credit Loans Online – Love Island Stars ‘Promote Buy Now, Pay Later Businesses That Lure Young People Into Debt’
Bad Credit Loans Online – Bad Credit Loans Online – Love Island Stars “Promote Buy Now, Pay Later Businesses That Lure Young People Into Debt” | Zoom Fintech