MP Stella Creasy sets sights on BNPL pushing fashion retailers
Labour MP Stella Creasy is calling on fashion retailers such as boohoo and Missguided to temporarily halt buy now pay later (BNPL) schemes, labelling them a “financial scandal waiting to happen”.
The UK government last week voted down Creasy’s cross-party amendment to the Financial Services Bill, which sought to introduce regulations on BNPL providers like Klarna and Clearpay.
Ministers have indicated they will only take action after a review of unsecured credit market regulation is published.
Creasy told the Evening Standard: “My message to all retailers is I’m going to hold them responsible until the government gets itself in order and gets the regulation in place.”
She added: “I am very concerned by any websites which prioritise BNPL. I’m very concerned by any companies that actually offer discounts to push people onto using BNPL”
"I want to see responsible retailers step in where the government has failed. It is a ticking time bomb particularly of younger consumers.”
A spokesman for Clearpay said: “We support fit for purpose regulation that protects consumers, but also acknowledges their desire for flexibility when it comes to making payments.”
Martin Lewis
Late last year, English journalist/TV presenter and founder of MoneySavingExpert.com, Martin Lewis, also slammed the unregulated BNPL space.
Further details on that can be found here.
