SOME buy now, pay later customers will get refunds after the watchdog identified potentially unclear terms and conditions.
Three firms – Clearpay, Laybuy, and Openpay – have agreed to voluntarily refund customers who were charged late payment fees in specific circumstances.
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The Financial Conduct Authority (FCA) has asked buy now, pay later firms to make terms and conditions clearer.
The FCA said it was concerned there was a potential risk of harm to consumers as a result of the way some firms’ terms were drafted.
The four firms involved – Clearpay, Klarna, Laybuy and Openpay – have fully co-operated with the FCA’s work, the regulator said.
The firms will now make terms on issues such as contract cancellations and payments 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, the FCA said.
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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.”
We’ve asked Clearpay, Laybuy, and Openpay who will get the refunds and if customers will have to make a claim or will get the cash automatically, and will update when we hear back.
