") no-repeat center center;background-size:10px 16px;content:' '}@media(min-width:768px){.UeJNJ::before{display:none}}@media(min-width:1000px){.lfyduH .taboola{display:none}}.lfyduH:has(#taboola-carousel-thumbnails){min-height:426px}.lfyduH:has(#taboola-mid-article-thumbnails-crime){min-height:405px}@media(min-width:1000px){.lfyduH:has(#taboola-carousel-thumbnails),.lfyduH:has(#taboola-mid-article-thumbnails-crime){min-height:0}}.maSQa{width:100%;margin-bottom:16px}@media(max-width:767px){.maSQa{min-height:590px}}@media(min-width:768px){.maSQa{height:558px}}.iUtUOL .tp-container-inner,.iUtUOL .sc-1suqprf-0{position:relative;box-shadow:0 -22px 16px 22px rgba(255,255,255,0.95);box-shadow:0 -22px 16px 22px light-dark(rgba(255,255,255,0.95),rgba(0,0,0,0.95))}.iUtUOL.closed{display:none}.cAWJSb{width:32px}.cAWJSb,.cAWJSb:focus{color:#627aac;color:light-dark(#627aac,#627aac)}.cAWJSb:hover,.cAWJSb:active,.cAWJSb:focus-visible{color:#9cabcb;color:light-dark(#9cabcb,#9cabcb)}@media(min-width:768px){.cAWJSb.mobile-only{display:none}}.kvSIBL{width:32px}.kvSIBL,.kvSIBL:focus{color:#4e4e4e;color:light-dark(#4e4e4e,#4e4e4e)}.kvSIBL:hover,.kvSIBL:active,.kvSIBL:focus-visible{color:#919191;color:light-dark(#919191,#919191)}@media(min-width:768px){.kvSIBL.mobile-only{display:none}}.fAfNYP{width:32px}.fAfNYP,.fAfNYP:focus{color:#25d366;color:light-dark(#25d366,#25d366)}.fAfNYP:hover,.fAfNYP:active,.fAfNYP:focus-visible{color:#66e093;color:light-dark(#66e093,#66e093)}@media(min-width:768px){.fAfNYP.mobile-only{display:none}}.jOXOdf{width:32px}.jOXOdf,.jOXOdf:focus{color:#ec1a2e;color:light-dark(#ec1a2e,#ec1a2e)}.jOXOdf:hover,.jOXOdf:active,.jOXOdf:focus-visible{color:#f58992;color:light-dark(#f58992,#f58992)}@media(min-width:768px){.jOXOdf.mobile-only{display:none}}.dzqQwN{display:flex;gap:12px}.dFzDMM .sc-17yxc4y-0{display:none}.dFzDMM:hover .sc-17yxc4y-0,.dFzDMM.bookmark-button-saved .sc-17yxc4y-0{display:block}.dFzDMM:hover .sc-17yxc4y-1,.dFzDMM.bookmark-button-saved .sc-17yxc4y-1{display:none}.dFzDMM.bookmark-button-saved .sc-17yxc4y-0{display:block}.dFzDMM.bookmark-button-saved .sc-17yxc4y-1{display:none}.dFzDMM.bookmark-button-saved:hover .sc-17yxc4y-0{display:none}.dFzDMM.bookmark-button-saved:hover .sc-17yxc4y-1{display:block}.iJqvPe{display:inline-block;width:32px;height:32px;color:#70a5a7;color:light-dark(#70a5a7,#70a5a7)}.sQzGY{display:flex;flex-direction:row;justify-content:center;gap:12px}.cNueyK{display:flex;position:relative;justify-content:center}@media(min-width:768px){.cNueyK{justify-content:flex-end;padding-top:12px;margin:0}}.dUmHef{display:flex}.sticky .dUmHef{flex-direction:column}.igSthU{overflow:hidden;height:23px;margin-bottom:8px;border-bottom:0;clear:both}@media(min-width:768px){.igSthU{height:25px}}.fvIzys{display:inline-block;flex-shrink:0;margin:0 12px 0 0;font:bold 14px/normal 'Indy Sans','Indy Sans Fallback',sans-serif}.fvIzys::after{content:':'}.knjHva{display:inline-block;margin-right:12px;margin-bottom:4px;color:#222;color:light-dark(#222,#fff);font:normal 14px/1.29 'Indy Sans','Indy Sans Fallback',sans-serif;text-decoration:underline}.knjHva::first-letter {text-transform:capitalize}@media(min-width:1000px){.subscribed .gryCYY{margin-top:-184px}.article-feature:not(.article-feature-video) .subscribed .gryCYY{margin-top:-407px}}.gryCYY>p{margin:16px 0}.article-premium .gryCYY>p{line-height:27px}.gryCYY>h2{font-size:21px}.article-climate .gryCYY>h2{color:#ec1a2e;color:light-dark(#ec1a2e,#ec1a2e)}.article-sgi .gryCYY>h2{color:#ec1a2e;color:light-dark(#ec1a2e,#ec1a2e)}.gryCYY>p:first-child{margin-top:0}.gryCYY span:first-child~p:first-of-type{margin-top:0}.FtcnY{display:flex;position:relative;max-width:100%;min-height:600px;justify-content:center;margin:0 auto;background-color:transparent;clear:both}@media(min-width:1000px){.FtcnY{min-height:450px}}.teads .FtcnY{display:block}.FtcnY [data-mpu]{position:sticky;top:16px}@media(min-width:1000px){.cCcguK{display:none}}.cCcguK[data-mpu1]{min-height:600px}.cCcguK.pb-20{padding-bottom:20px}.jasvOK{min-height:600px}@media(min-width:1000px){.jasvOK{min-height:450px}}.jasvOK.mobile-only{display:block}@media(min-width:1000px){.jasvOK.mobile-only{display:none}}.jasvOK.desktop-only{display:none}@media(min-width:1000px){.jasvOK.desktop-only{display:block;margin-bottom:16px}}.jasvOK.desktop-only+p{margin-top:0}.jasvOK .third-party-ad{position:sticky;top:16px}.dqcLBh{display:block;width:48px;height:48px;margin:10px auto 30px}.bYBoJE{width:100%;flex-grow:1}.bYBoJE .social-share{width:100%;padding-top:10px;padding-bottom:20px}@media(min-width:768px){.bYBoJE .social-share{justify-content:flex-start}}.bYBoJE .social-share.sticky{display:none}@media(min-width:1000px){.bYBoJE .social-share.sticky{display:flex;position:sticky;top:14px;width:34px;flex-direction:column;padding-top:0;margin-top:0;margin-left:-25%}.bYBoJE .social-share.sticky .sc-mgcah7-0{margin:0 0 16px}.article-feature-video .bYBoJE .social-share.sticky{margin-top:0}.article-feature:not(.article-feature-video) .bYBoJE .social-share.sticky{margin-top:35%}}.bYBoJE.sponsored-article img,.bYBoJE.sponsored-article video{width:100%;max-width:602px;height:auto}.bYBoJE.sponsored-article iframe{max-width:602px;max-height:400px}.bYBoJE .under-article-prompt-donations{padding-bottom:8px;margin-top:-3px}.bYBoJE .big-letter{--color:#222;display:flex;position:relative;width:0;height:0;align-items:center;justify-content:center;padding:40px;margin-top:22px;margin-right:12px;border:1px solid var(--color);float:left;font:normal 52px/1 'Indy Serif','Indy Serif Fallback',serif;text-transform:uppercase}.bYBoJE .big-letter:first-child{margin-top:6px}.bYBoJE .big-letter::before{position:absolute;top:0;left:0;width:100%;height:100%;box-sizing:border-box;border:1px solid var(--color);border-radius:50%;content:''}.bYBoJE #taboola-below-article-1{min-height:2350px}@media(min-width:768px){.bYBoJE #taboola-below-article-1{min-height:3370px}}.bYBoJE #taboola-below-article-1-split-num-1{min-height:130px}@media(min-width:768px){.bYBoJE #taboola-below-article-1-split-num-1{min-height:415px}}.bYBoJE .sc-fwko30-0+.sc-1xtsh2b-0{margin-top:-16px}@media(min-width:768px){.bYBoJE{max-width:636px;margin:0}}@media(min-width:1000px){.bYBoJE{max-width:624px;margin:0}.bYBoJE.subscribed{max-width:636px}}@media(max-width:999px){.bYBoJE{padding-right:0}.bYBoJE .under-article-prompt-donations{margin-top:-18px}}.bYBoJE .anchor-nav-header{scroll-margin-top:79px}.bYBoJE .anchor-nav-header a{color:#222;color:light-dark(#222,#fff)}.bYBoJE .anchor-nav-header a:hover{color:#222;color:light-dark(#222,#fff)}@supports(color:light-dark(red,red)){.bYBoJE .big-letter{--color:light-dark(#222,#fff)}}.liYrJc{display:flex;flex-wrap:wrap;justify-content:flex-start;margin-bottom:8px;color:#d3d3d3;color:light-dark(#d3d3d3,#d3d3d3);font:normal 16px/20px 'Indy Sans','Indy Sans Fallback',sans-serif}@media(min-width:768px){.liYrJc{width:70%;align-items:center;justify-content:flex-start;margin-bottom:0;font:normal 16px/24px 'Indy Sans','Indy Sans Fallback',sans-serif}}@media(min-width:1000px){.liYrJc{width:70%;margin-bottom:0}}.dMNxBE{display:flex;height:20px;margin:0 12px 8px 0}.article-voices .dMNxBE{height:auto}@media(min-width:425px){.article-voices .dMNxBE{height:20px}}.dMNxBE::before{display:inline-block;align-self:center;margin-top:1px;margin-right:12px;content:'\2022';transform:scale(1.5)}.dMNxBE:first-child::before{content:none}@media(min-width:768px){.dMNxBE{height:24px;margin-bottom:0}.dMNxBE::before{margin-top:2px}}.dMNxBE time{display:block}.dMNxBE time::first-letter {text-transform:capitalize}.efpEY{display:inline-block;margin:0 12px 8px 0;color:#ef4757;color:light-dark(#ef4757,#ef4757);font:bold 16px/20px 'Indy Sans','Indy Sans Fallback',sans-serif;letter-spacing:-0.5px}.efpEY:hover,.efpEY:active{color:#f58992;color:light-dark(#f58992,#f58992)}@media(min-width:768px){.efpEY{margin-bottom:0}}.fefQOD{margin:0 4px 8px 0}.fefQOD::before{display:inline-block;margin-top:2px;margin-right:12px;color:#d3d3d3;color:light-dark(#d3d3d3,#d3d3d3);content:'\2022';transform:scale(1.5)}.fefQOD:first-child::before{display:none}@media(min-width:768px){.fefQOD{margin-bottom:0}}.bMRmfY{display:flex;justify-content:flex-start;padding:0;margin:0 0 16px}@media(min-width:768px){.bMRmfY{display:flex;width:30%;align-items:center;justify-content:flex-end;margin:0}}@media(min-width:1000px){.bMRmfY{width:30%}}.dfBarH{padding-top:0;border-top:0;border-bottom:0}@media(min-width:768px){.dfBarH{display:flex;flex-flow:row wrap;padding-bottom:16px}.dfBarH .sc-mzrbq8-0{order:1}.dfBarH .sc-mzrbq8-6{order:2}}@media(min-width:1000px){.dfBarH{flex-direction:row}}.gkrVhQ{padding:16px 12px 12px;text-align:left;font:bold 14px/18px 'Indy Sans','Indy Sans Fallback',sans-serif}@media(min-width:768px){.gkrVhQ{padding:16px 16px 12px}}.article-infact .gkrVhQ{padding:16px 0}@media(min-width:1000px){.gkrVhQ{padding:24px 0 19px}.article-feature .gkrVhQ{max-width:968px;margin:0 auto}}.gkrVhQ a{color:#fff;color:light-dark(#fff,#fff)}.gkrVhQ a:hover{color:#f58992;color:light-dark(#f58992,#f58992)}.gkrVhQ a:hover::after{color:#fff;color:light-dark(#fff,#fff)}.gkrVhQ a::after{margin-right:4px;margin-left:4px;content:'>'}.gkrVhQ a:last-child::after{display:none}.gbPKFW{margin:0 0 20px;letter-spacing:0}.bulCXp{margin:0;color:#d3d3d3;color:light-dark(#d3d3d3,#d3d3d3);font:normal 16px/20px 'Indy Sans','Indy Sans Fallback',sans-serif}@media(min-width:768px){.bulCXp{font:normal 18px/22px 'Indy Sans','Indy Sans Fallback',sans-serif}}@media(min-width:1000px){.bulCXp{font:normal 20px/24px 'Indy Sans','Indy Sans Fallback',sans-serif}}.bulCXp p{font:inherit}.article-feature .bulCXp a{font-weight:bold}.gOoYlj{max-width:968px;margin:0 auto;background:#222;background:light-dark(#222,#222)}@media(min-width:1000px){.parallax .gOoYlj{max-width:1240px}}.fdtMsm{font:bold 32px/36px 'Indy Serif','Indy Serif Fallback',serif;letter-spacing:-0.0156em}@media(min-width:768px){.fdtMsm{font:bold 44px/48px 'Indy Serif','Indy Serif Fallback',serif;letter-spacing:-0.0113em}}@media(min-width:1000px){.fdtMsm{font:bold 54px/58px 'Indy Serif','Indy Serif Fallback',serif;letter-spacing:-0.0092em}}.cuYuhQ{background:#222;background:light-dark(#222,#222)}.cuYuhQ .sc-qvufca-1{max-width:968px;background:#222;background:light-dark(#222,#222)}.cuYuhQ .sc-qvufca-0{margin:0}@media(max-width:999px){.cuYuhQ .sc-qvufca-0{margin:0 12px 0}}.cuYuhQ .sc-qvufca-2,.cuYuhQ .sc-1cmj4ml-0{color:#fff;color:light-dark(#fff,#fff)}.cuYuhQ .sc-qvufca-2{margin:0 0 20px}.cuYuhQ .sc-1cmj4ml-0{margin-bottom:16px}.gaSgoa{max-width:100%}.fyQqeP{position:relative}.gNtHiz{position:relative;width:100%;padding-top:56.25%;background:#000;background:light-dark(#000,#000)}.iWxMKl{display:flex;position:absolute;top:0;left:0;width:100%;height:100%;align-items:center;justify-content:center}.ksAEji{width:10%}.dpbOBJ.fullscreen{position:fixed;top:0;left:0;z-index:3000000000;width:100%;height:100%;background:#000;background:light-dark(#000,#000)}.dpbOBJ .closebtn{display:none;position:absolute;top:0;right:0;width:100px;height:100px}.dpbOBJ .closebtn.show{display:block}.dpbOBJ .btn{position:absolute;top:5px;right:5px;width:25px;height:25px;color:#222;color:light-dark(#222,#fff);font-family:helvetica,sans-serif;font-size:20px;line-height:25px;text-align:center}.eBMXOi{max-width:100%;clear:both}.eIyOpS{display:flex;width:600px;max-width:100%;align-items:center;padding:20px 0 10px;line-height:normal}@media(min-width:1000px){.eIyOpS{padding:20px 0}}.hPZlCI{width:272px;padding:0 0 16px;margin:0 auto}@media(min-width:768px){.hPZlCI{width:400px}}@media(min-width:1000px){.hPZlCI{padding:0 0 16px}}@media(min-width:1000px){.kFNaRc .sc-qvufca-1{padding:0 16px}}.fzuCgM{overflow:hidden;height:0;color:transparent}.article-liveblog .dzfINj{background-color:#f7f7f7;background-color:light-dark(#f7f7f7,#222)}.jBkNwU{justify-content:center}.cumEve{justify-content:center}@keyframes hqVOOe1548920386{from{transform:translateX(0)}to{transform:translateX(-100%)}}@keyframes bReFEb1548920386{from{transform:translateX(100%)}to{transform:translateX(0)}}
Stay up to date with notifications from The Independent Notifications can be managed in browser preferences.
Not now Yes please
News Business Crackdown on buy now, pay later schemes to protect 10 million shoppers Klarna-style plans have ballooned since regulation all but killed off predatory payday loans
Martin Lewis urges Britons to avoid ‘tragic’ mistake in support payment claim A crackdown on unregulated buy now, pay later (BNPL) schemes is set to protect around 10 million Britons from borrowing what they cannot afford to pay back, ministers said.
The market for BNPL has exploded in recent years, lately buoyed by the cost of living crisis, as consumers are attracted to the promise of interest-free future payments for items they could not otherwise afford to purchase.
Companies such as Klarna allow retailers to offer their products to customers on monthly payment plans lasting 30 days to three years, in return for a commission. New legislation will target shorter plans as credit agreements lasting longer than 12 months are already covered by the Consumer Credit Act.
The purchase schemes are popular. Adobe Analytics found that 12 per cent of online purchases made in the UK in January were made with BNPL, and debt charity StepChange said 27 per cent of Britons planned to use such a scheme to pay for Christmas last year.
However, ministers and campaigners fear that the unregulated nature of BNPL schemes risks people piling up debt with various providers.
Andrew Griffith , the City minister, said the government plans to bring the credit schemes under the eye of the Finacial Conduct Authority and give consumers the right to take complaints to the ombudsman.
Providers will also have to give consumers key information about their loans, and issue credit that is “genuinely affordable”.
The Treasury said it will work with the financial services sector to ensure credit is available to people who struggle to access it.
A number of buy now, pay later services have emerged in recent years (Getty) At the Financial Inclusion Policy Forum in Birmingham on Tuesday, the minister met debt advisers who will help to deliver free debt advice to more than 1.5 million people in England over the next three years.
Mr Griffith said: “People should be able to access affordable credit, but with clear protections in place. That is why these proposed regulations are so important.
“This summit will also help regulators and banks better understand the best ways to support people who feel boxed in by debt, and open up the financial system to people who find it more difficult to access.”
Dr Theodora Hadjimichael, the chief executive of trade body Responsible Finance, described BNPL as “the Wild West of credit” and said regulation is “long overdue”.
The total value of BNPL has ballooned in the past couple of years after regulation all but killed the predatory payday loans market. A report by Research and Markets in November forecast 35 per cent growth year-on-year for 2022. In the US, the value rose from $2bn (£1.7bn) in 2019 to $24bn in 2021.
Thank you for registering Please refresh the page or navigate to another page on the site to be automatically logged in Please refresh your browser to be logged in
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments