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9 Jul 2025

A recent BBC Breakfast segment has sparked backlash from the cycling community over its portrayal of e-bikes, with critics accusing the broadcaster of conflating legal e-bikes with illegal,...

8 Jul 2025

More than 30 locations across Scotland have seen a major rise in the number of people cycling, according to newly released data.

7 Jul 2025

Sixteen illegally upgraded e-bikes capable of speeds up to 40mph have been seized and disposed of in a joint enforcement operation in Birmingham city centre.

7 Jul 2025

Bristol-based Cytech training provider and ACT member Life Cycle has launched its award-winning Bikes Beyond Bars programme at HMP Bullingdon, expanding a project that has already impacted lives...

4 Jul 2025

New data from Strava reveals a major surge in cycling across the UK, with Gen Z and Millennials leading the charge.

3 Jul 2025

Shimano has launched an urgent investigation into what it describes as a “critical” shortage of skilled bike mechanics across Europe, warning that the situation threatens to...

2 Jul 2025

MPs have called on Amazon and eBay to tighten controls after e-bikes and chargers flagged as serious fire risks were found for sale on their platforms.

25 Jun 2025

The E-Bike Positive campaign has seen major success in the first half of 2025, with its message reaching nearly 8 million people across the UK through high-profile media coverage and growing...

20 Jun 2025

The House of Commons Business and Trade Committee has asked the ACT, and its parent company Bira, to help them reach out to small business retailers across the country, for their quick input on...

20 Jun 2025

Activate Cycle Academy has reopened its Cytech training facility in Darlington, offering a full range of courses from Home Mechanic up to Cytech Technical Three.
 

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Nearly half of Buy Now Pay Later customers continue to be misled

Posted on in Business News , Cycles News

A recent story published in This is Money, Financial Website of the Year included survey findings showing that over 40 per cent of shoppers are unaware that missing payments when using a Buy Now Pay Later service could harm their credit score.

According to Compare the Market, one in five also felt they weren't clearly shown the terms and conditions, again raising more concerns over the increasingly popular payment method.

One company in particular, a popular Swedish finance provider that was previously mentioned by the ACT for misleading a customer and negatively affecting their credit score, has been the cause of concern for many. The firm is incredibly popular in Britain with 6million people using its three ways of paying for items since 2015. It has also begun providing in-store payment options, with 10,000 shops including H&M, Halfords and Schuh.

While the company claims to believe 'in being simple and straightforward in everything we do', This is Money found it difficult to find on its website the fact that your credit score is affected by non-payment on some of its products, something likely reflected in the survey results.

A clear example of this obscurity is under an FAQ section on the website of one of the biggest retailers it provides payment options for - H&M - it responds to the specific question of whether using the Buy Now Pay Later firm affects your credit score with: 'For more information about Klarna's credit check and if it affects your score please contact Klarna directly.'


The company told This is Money in January 2019: 'We're open about our lending policies and credit authorisation processes, and we make sure we stay in regular contact with customers to let them know when a payment is due.

'If after a period of several months we have not received payment, we advise the credit bureau that they have not paid.

'At this point a customer's credit score may be affected.'

The company also said in response to Compare the Market's research: 'Klarna does not report missed payments to credit reference reference agencies in relation to its pay later and pay in three products.

'To date, a customer's credit score has not been impacted by using Klarna's pay later products even if they have failed to pay on time'. It said its financing payment plans were Klarna's only regulated credit product.

Another recent article explains the dangers of the Buy Now Pay Later firm also being heavily promoted by celebrities through Instagram with thousands of young followers. Debt campaigners have branded the celebs "irresponsible".

Martyn James from Resolver said: "It's totally irresponsible for influencers to take cash to plug credit products on their profiles.

"There's a huge difference between plugging an expensive pair of shoes and borrowing beyond your means to pay for them.

"With little to no warnings about the risks, shoppers could find themselves sleepwalking in to debt."

New research also warns that over two million shoppers have damaged their credit scores using Buy Now Pay Later schemes.

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