Jenny Ross, Which? Money Editor, said:
“Using buy now pay later (BNPL) is an easy and convenient way to pay for millions. However, with currently little to no information or warnings about the risks of incurring late fees or getting into debt, it raises concerns that many shoppers do not fully understand the products they’re using.
“BNPL providers’ move to work with credit reference agencies to report customer BNPL usage and missed payments is a step in the right direction, as it could help mitigate the risk of consumers taking on more BNPL credit than they can afford.
“However, this does not remove the urgent need for government regulation of all BNPL firms to follow as quickly as possible to ensure users are properly protected.”