Estimates suggest one in 10 consumers who use companies such as Klarna and Clearpay end up with debt collectors as no safeguards in place
If you’ve been shopping for summer sale bargains online lately, you’ll have come across the tempting opportunity to buy now, pay later – splitting the cost of that must-have item into several repayments, usually over a few weeks.
It can feel like a win-win – it’s interest free, at least upfront, because the business model of firms such as Klarna and Clearpay, which have expanded rapidly in the UK, is to charge the fees to the retailer rather than the customer.
