Quarter of Buy Now Pay Later users hit by late repayment fees

Nearly a quarter (22%) of Buy Now Pay Later (BNPL) users have missed one or more repayments in the six months to December 2023, leading to late payment fees and in a quarter of cases, a mark against their credit score too according to data from the nonprofit Centre for Financial Capability (CFC).

More than a quarter of those users saw their credit scores decline, or were contacted by debt collectors, the survey found. The research found that 34% of consumers between the ages of 18 and 24 were charged late fees, more than any other age group.

Jane Goodland, Chair of the Board of Trustees at The Centre for Financial Capability said “As the ongoing cost of living crisis continues to impact the British public, it is apparent that many users are increasingly reliant on these schemes, without fully understanding the risks involved.

Our polling shows the high usage of BNPL particularly among young people, many of whom are facing difficult financial consequences as a result of these schemes.”