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3 Oct 2024

3 in 4 Britons (77%) would ban paper receipts if they knew how many trees were cut down to generate them – and millennials are the most eco-conscious (rising to 87%).

25 Sep 2024

Major media outlets, including the BBC and Sky News, as well as regional and cycling-focused media to the growing  have been giving significant coverage to E-Bike Positive, the largest-ever...

25 Sep 2024

The Association of Cycle Traders (ACT) is excited to announce its new partnership with Renticy, the dynamic platform transforming retail through rental solutions. This collaboration brings a...

24 Sep 2024

The British Independent Retailers Association (Bira) is set to address critical issues facing the UK's high streets at its upcoming Annual Conference, marking the event's return after a six-year...

23 Sep 2024

Madison is teaming up with Cytech and the Rediscovery Centre in Ireland, to offer a first-class bicycle mechanic training facility by providing a full Park Tool workshop.

23 Sep 2024

A report from active travel charity Sustrans has found that a total of 1.9 million, or 38 per cent of people on a low income or not in employment want to cycle, or cycle more, but are...

23 Sep 2024

Independent shops are not concerned about Halfords' decision to double its offering of premium bikes, according to interviews with Cycling Weekly.

23 Sep 2024

Cycling Electric has published  an investigation into how misinformation on ‘electric bike’ fires imay be increasing the danger to consumers and affecting sales of...

19 Sep 2024

The British Independent Retailers Association (Bira) has said the inflation rate holding steady at 2.2% in August provides some stability for the high street - but stresses the Bank of England...

17 Sep 2024

UK Finance and others who form the Cash Industry Environment Charter have been discussing best practices when it comes to cash deposits, and as a result have produced a short guide on reducing...

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FCA secures changes to potentially unfair and unclear T&Cs of BNPL providers

Posted on in Business News , Cycles News , Political News

Theterms Financial Conduct Authority (FCA) secures changes to potentially unfair and unclear terms in the contracts of Clearpay, Klarna, Laybuy and Openpay. The FCA was concerned there was a potential risk of harm to consumers as a result of the way some of the firm's terms were drafted.

 

The Woolard Review into change and innovation in the unsecured credit market found the use of Buy-Now Pay-Later (BNPL) products nearly quadrupled in 2020 to £2.7 billion. The Government plans to change the law to bring some of the current forms of unregulated buy-now-pay-later products into FCA regulation.

Even though the type of buy-now-pay-later agreements offered by these firms are not yet regulated, the FCA was able to use the Consumer Rights Act to assess the fairness and transparency of the terms.

As a result of the FCA's work, the firms are making terms on issues like contract cancellations and continuous payment authorities fairer and easier to understand. In addition, one of the terms that involved late payment fees has resulted in Clearpay Laybuy, and Openpay agreeing to voluntarily refund customers who have been charged late payment fees in specific circumstances.

Sheldon Mills, Executive Director of Consumers and Competition at the FCA, said:

'Buy-Now Pay-Later has grown exponentially. We do not yet have powers to regulate these firms, but we do have powers to review the terms and conditions of consumer contracts for fairness, and have acted proactively to ensure that the BNPL industry adopts high standards in their terms and conditions.

'The four BNPL firms we have worked with have all voluntarily agreed to change their approach. We welcome this and hope that the rest of the industry will now follow.'

Find out more

The ACT has previously raised concerns about the improper regulation of BNPL providers and the risks that this brings to potential customers. 

It may be worth having a recap of the ‘Avoid the pitfalls' mini-series that the ACT published to answer the trade's questions about selecting the most suitable retail finance provider.

Key topics examined are why low rates can equal lost sales, the importance of checking the finer details of your agreement and why you should identify who actually lends the money when selecting your provider.

Choosing a finance provider, avoid the pitfalls #1
Choosing a finance provider, avoid the pitfalls #2
Choosing a finance provider, avoid the pitfalls #3

 

If you would like to talk to someone from the ACT or ActSmart about how we can help find the right finance provider for you please get in touch.

C 2 Zero Limited t/a ActSmart & Ride it away is authorised and regulated by the Financial Conduct Authority 657829.

 

 

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