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12 Aug 2024

Austrian kid's bike brand, Woom has entered the UK market. Having had success in 30 other countries and sales of over 1 million units, Woom bikes will be distributed by UK trade partners online...

12 Aug 2024

Leading magazine Cycling Weekly has put dozens of helmets to the test and has rounded up what it thinks are the best of the bunch right.

30 Jul 2024

More than £17.5m for the first phase of a major new sustainable transport scheme has been announced by Liverpool City Region's mayor Steve Rotheram.

30 Jul 2024

The widespread popularity of e-bikes and e-scooters means "it is a bit of a wild west out there" in terms of safety, an electric bike shop owner has told the BBC.

30 Jul 2024

A bill announced in the King’s Speech that would address the potential fire risks associated with e-bikes and lithium-ion batteries, has been welcomed.

30 Jul 2024

The new government are being urged to end the previous culture war-based approach to active travel and start investing properly in safe bike routes.
 

30 Jul 2024

An independent bike shop in Stroud recently offered a community bike ride to local people. ACT member The Ark Cycles opened Ark Community Shop Ride to cyclists of all ages and skill levels.

26 Jul 2024

The government’s announcement in the recent King’s Speech regarding e-bike battery safety and the regulation of online marketplaces is a welcome step forward towards improving safety...

18 Jul 2024

Cytech training provider Activate Cycle Academy is to exhibit at the GT Malverns Classic Mountain Bike Festival 2024, an event often described as the “Glastonbury of mountain...

15 Jul 2024

The cycling industry is “ripe” for smart investment, and a renewed wave of merger and acquisition deals, as it looks ahead to a profitable 2025 and “significant” medium...

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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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