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Buy-now pay-later complaints jump as shoppers rely on providers amid cost of living crunch

Buy-now pay-later complaints jump as shoppers rely on providers amid cost of living crunch

Shoppers are filing more complaints about buy-now pay-later (BNPL) firms to the UK’s financial complaints body as Brits turn to firms like Klarna and Zilch to fund their spending in the cost of living crisis.

by Shared from City A.M. | 19 Feb, 2023

Complaints to the Financial Ombudsman Service (FOS) involving BNPL firms jumped 36 per cent to 220 last year, according to figures obtained via a Freedom of Information request by lending firm Creditspring show.

The increase in complaints – which sat at 162 in 2020 – reflects a boom in usage of the products.

Some 4.1m used the products for the first time in 2022 as rising prices squeezed shoppers spending power, according to data firm Equifax.

And last month, it was revealed that nearly £1 in every £8 spent online in January was sourced via buy-now pay-later providers, according to research by Adobe Analytics.

However, BNPL firms are yet to be regulated and currently sit outside the FOS’s remit, meaning their complaints are technically falling on deaf ears.

Buy-now pay-later complaints jump as shoppers rely on providers amid cost of living crunch

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