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Cardholders of Jaja complain of long wait times and horrendous service
https://www.dailymail.co.uk/money/cardsloans/article-9059785/Cardholders-Jaja-complain-long-wait-times-horrendous-service.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 https://www.dailymail.co.uk/money/cardsloans/article-9059785/Cardholders-Jaja-complain-long-wait-times-horrendous-service.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 <h2>’I’m missing £500 the week before Christmas’: Post Office credit card customers face problems after being moved to little-known Jaja</h2><ul class=”mol-bullets-with-font”><li class=”class”><strong>Jaja bought around 500,000 credit card accounts in June 2019 </strong></li><li class=”class”><strong>It moved customers over to its own systems at the start of October </strong></li><li class=”class”><strong>Customers have complained about long wait times on the phone and being unable to get access to overpayments and refunds on the card</strong></li><li class=”class”><strong>The firm has a Trustpilot rating of just 1.1/5 and 95% of reviews are ‘bad’ </strong></li></ul><p class=”author-section byline-plain”>By <a href=”https://www.dailymail.co.uk/home/search.html?s=&authornamef=George+Nixon+For+Thisismoney.co.uk” class=”author” rel=”nofollow”>George Nixon For Thisismoney.co.uk</a> <a rel=”nofollow noreferrer noopener” target=”_blank” href=”https://twitter.com/intent/follow?screen_name=George_Nixon97&tw_p=followbutton” class=”twitter-follow-author”><span class=”follow-author”></span></a> </p><p class=”byline-section”><span class=”article-timestamp article-timestamp-published”> <span class=”article-timestamp-label”>Published:</span> <time datetime=”2020-12-22T07:14:35+0000″> 07:14 GMT, 22 December 2020 </time> </span> | <span class=”article-timestamp article-timestamp-updated”> <span class=”article-timestamp-label”>Updated:</span> <time datetime=”2020-12-22T09:49:15+0000″> 09:49 GMT, 22 December 2020 </time> </span> </p> <!– ad: https://mads.dailymail.co.uk/v6/de/money/moneycardsloans/article/other/para_top.html –> <div itemprop=”articleBody”><div class=”mol-img-group floatRHS”> <div class=”mol-img”> <div class=”image-wrap”> <img id=”i-221a3c689af690d1″ src=”https://i.dailymail.co.uk/1s/2020/12/16/16/36921760-9059785-image-a-23_1608134750586.jpg” height=”200″ width=”306″ alt=”Jaja launched its own app-based credit card in 2019, but it has received a poor response” class=”nothing”> </div> </div> <p class=”imageCaption”>Jaja launched its own app-based credit card in 2019, but it has received a poor response </p></div><p class=”mol-para-with-font”>A smartphone-based credit card provider which bought the accounts of Bank of Ireland and the Post Office last year is being flooded with complaints from frustrated customers.</p><p class=”mol-para-with-font”>Holders of credit cards provided by Jaja, many of whom had no idea the start-up ran their cards until hitting problems, have rounded on the company in recent weeks.</p><p class=”mol-para-with-font”><a class=”class” href=”https://www.dailymail.co.uk/money/cardsloans/article-8910533/Credit-card-chaos-500-000-accounts-taken-Jaja.html”>Complaints have poured in</a> since the company moved Post Office cardholders over to its own systems at the start of October, and things appear to have gotten worse.</p><p class=”mol-para-with-font”>Those who have spoken to This is Money have reported having to wait close to six hours on the phone to report a £10 fraudulent transaction, technical errors leading to hundreds of pounds going missing and credit card refunds worth thousands of pounds failing to be credited to their bank account. </p><p class=”mol-para-with-font”>In one instance, one customer who wanted to cancel their card after the dreadful customer service received was told he would have to write a letter to the app-based credit card provider, and that he would be contacted after up to six week wait.</p><p class=”mol-para-with-font”>Jaja began migrating customers over to its own credit cards at the start of October, after it bought credit card accounts from AA, Bank of Ireland and the Post Office in June 2019. </p><p class=”mol-para-with-font”>Post Office cardholders who applied for accounts after then have their cards provided by Capital One.</p><div class=”artSplitter mol-img-group”> <div class=”mol-img”> <div class=”image-wrap”> <img id=”i-460a52b3ec318fb5″ src=”https://i.dailymail.co.uk/1s/2020/12/16/16/36921524-9059785-image-a-22_1608134661392.jpg” height=”423″ width=”634″ alt=”Jaja bought the credit card accounts of Bank of Ireland and the Post Office in June 2019 and migrated them over to its own systems at the start of October” class=”nothing”> </div> </div> <p class=”imageCaption”>Jaja bought the credit card accounts of Bank of Ireland and the Post Office in June 2019 and migrated them over to its own systems at the start of October </p></div><p class=”mol-para-with-font”>But while Jaja has paused new applications for its own cards to focus on these existing ones, the start-up, which made an £8million loss in 2019, has been deluged with complaints since then.</p><p class=”mol-para-with-font”>Of 682 reviews left on the website Trustpilot, 95 per cent are classed as ‘bad’, with the company averaging just 1.1 stars out of 5. </p><p class=”mol-para-with-font”>One reviewer described the service he had received ‘as the worst I have ever experienced’.</p><p class=”mol-para-with-font”>Our sister title Money Mail reported on customers’ problems with the company <a class=”class” href=”https://www.dailymail.co.uk/money/cardsloans/article-8910533/Credit-card-chaos-500-000-accounts-taken-Jaja.html”>last month</a>, with some being hit with unexplained late payment fees, and the problems appear to be mounting.</p><h2 class=”mol-para-with-font mol-style-subhead”>’My £500 overpayment has gone missing’ </h2><div class=”mol-img-group floatRHS”> <div class=”mol-img”> <div class=”image-wrap”> <img id=”i-29bc99c185fb246a” src=”https://i.dailymail.co.uk/1s/2020/12/16/16/36918402-9059785-image-a-25_1608134764026.jpg” height=”434″ width=”306″ alt=”Issues with Jaja’s app meant Daniel Robinson overpaid his credit card bill by £1,000. The company still has £500 of his money and he can’t get it back” class=”nothing”> </div> </div> <p class=”imageCaption”>Issues with Jaja’s app meant Daniel Robinson overpaid his credit card bill by £1,000. The company still has £500 of his money and he can’t get it back</p></div><p class=”mol-para-with-font”>Daniel Robinson, from the North West, had no idea his Post Office card had been taken over by Jaja until he began having problems with it this month, having never had any previous issues in the six years he had been with the Post Office.</p><p class=”mol-para-with-font”>When trying to settle his credit card bill of around £500, his Jaja app took the payment three times, but he said they never appeared on his statement.</p><p class=”mol-para-with-font”>Although he initially claimed back £1,000 in overpayments after disputing the transactions through his bank, Jaja then disputed one of the claims to claw back £500 of his own money, which Daniel said the company had subsequently lost track of.</p><p class=”mol-para-with-font”>He remained £500 down when he spoke to This is Money on Tuesday. </p><p class=”mol-para-with-font”>He said: ‘I have a girlfriend who works on the NHS frontline and right now we are over £500 out of pocket, which is a lot of money as we have only just got a new house.'</p><p class=”mol-para-with-font”>He added: ‘I didn’t choose to bank with them and wasn’t warned either. I was still using my Post Office card without knowing Jaja had taken over, and the statement just moved over without my consent.</p><p class=”mol-para-with-font”>’The Post Office used to be brilliant, Jaja are awful.'</p><p class=”mol-para-with-font”>It appears a far cry from the fintech which claimed to offer a smooth experience, no complicated forms and approvals in less than three minutes <a class=”class” href=”https://www.dailymail.co.uk/money/cardsloans/article-6751991/What-Jaja-New-mobile-credit-card-launch-month.html”>when we profiled it</a> ahead of the launch of its credit card in March 2019.</p><h2 class=”mol-para-with-font mol-style-subhead”>’I can’t get hold of £2,900 in refunds’ </h2><p class=”mol-para-with-font”>Another customer, Gemma, from Northern Ireland, has also been trying to claw back her own money from Jaja after four refunds for two cancelled holidays totalling more than £2,900 were deposited onto her new card last month.</p><p class=”mol-para-with-font”>However, although the refunds from Singapore Airlines and Virgin Atlantic are clearly shown on her in-app statement, she has been repeatedly told by Jaja’s customer services that they cannot see them.</p><div class=”artSplitter mol-img-group”><div class=”splitLeft”><div class=”mol-img”> <div class=”image-wrap”> <img id=”i-ff9a4db26422d58a” src=”https://i.dailymail.co.uk/1s/2020/12/16/16/36921806-9059785-image-a-35_1608134955890.jpg” height=”346″ width=”306″ alt=”Gemma told This is Money she had made 8 calls to Jaja’s customer services but had got nowhere” class=”nothing”> </div> </div></div><div class=”splitRight”><div class=”mol-img”> <div class=”image-wrap”> <img id=”i-b1a68cdff0336da4″ src=”https://i.dailymail.co.uk/1s/2020/12/16/16/36921706-9059785-image-a-36_1608134960687.jpg” height=”346″ width=”306″ alt=”She said she had stopped using the card for purchases and planned to close it after the terrible experience she had had” class=”nothing”> </div> </div></div><p class=”imageCaption”>Gemma, from Northern Ireland, received £2,900 worth of airline refunds to her Jaja account last month but has been unable to get her money back</p></div><p class=”mol-para-with-font”>She said: ‘Since then I have spent hours trying to contact Jaja. When you eventually get through, you’re told refunds are nothing to do with customer support and are then told to phone a different number, who then tells you there’s no reason why the first person can’t deal with you.'</p><p class=”mol-para-with-font”>Having made eight phone calls of up to 50 minutes each she said staff on the phone were passing the buck and said: ‘I’ve never experienced a credit card like Jaja and the experience has totally put me off it. </p><p class=”mol-para-with-font”>’I’ve stopped using Jaja for any purchases and will cancel it in future.'</p><h2 class=”mol-para-with-font mol-style-subhead”>’I had to write a letter to ask to close my account’ </h2><p class=”mol-para-with-font”>However, even cancellations appear to be proving a problem. Mark Davison, 53, from Berkshire, was forced to write a letter to the company last week asking to cancel his card, and that it would be 4-6 weeks before he was contacted by someone who could help him do so.</p><p class=”mol-para-with-font”>He had not used the Post Office card which Jaja replaced since last February, he noticed a £10 suspicious transaction made out to ‘Mangopay’ which he didn’t recognise but was forced to wait hours on the phone when reporting it.</p><div class=”artSplitter mol-img-group”> <div class=”mol-img”> <div class=”image-wrap”> <img id=”i-18f15de8c32d58f” src=”https://i.dailymail.co.uk/1s/2020/12/16/16/36921906-9059785-image-a-28_1608134802892.jpg” height=”501″ width=”634″ alt=”The company has received awful feedback on Trustpilot, with 95% of reviews classed as ‘bad'” class=”nothing”> </div> </div> <p class=”imageCaption”>The company has received awful feedback on Trustpilot, with 95% of reviews classed as ‘bad'</p></div><p class=”mol-para-with-font”>But even when he was told by the app-based credit card provider the transaction had been cancelled, it still showed up on his in-app list of transactions and the removal was only confirmed on his December statement.</p><p class=”mol-para-with-font”>He told This is Money his experience with the company had been ‘abysmal’, while it was also echoed by one recent Truspilot reviewer, ‘Scott M’, who wrote: ‘All I want to do is close my account, I’ve not used the card in three months and the balance is zero, they just won’t close it.'</p><p class=”mol-para-with-font”>In response to the three cases we highlighted and the negative Trustpilot reviews, a Jaja spokesperson said in a statement: ‘Following the recent transfer to Jaja and the subsequent issuance of new credit cards to our customers, some have had difficulties registering for our app and online servicing. </p><p class=”mol-para-with-font”>’This increased the number of calls to our customer services centres, causing longer waiting times than normal for some customers. </p><p class=”mol-para-with-font”>’We are also aware there have been some processing delays, which are being resolved. We have increased our staffing substantially to improve the situation and would like to apologise for the inconvenience caused. We are working hard to put things right for the customers impacted.'</p><div class=”moduleFull”><div class=”money item html_snippet module”> <style>
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Celebrity social media pushing ‘buy now, pay later’ credit
https://www.dailymail.co.uk/money/cardsloans/article-9055863/Celebrity-social-media-pushing-buy-pay-later-credit.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 https://www.dailymail.co.uk/money/cardsloans/article-9055863/Celebrity-social-media-pushing-buy-pay-later-credit.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 <h2>Terrifying price tag of the buy now pay later boom: Instant checkout credit is tempting millions of shoppers… but few realise the costly pitfalls</h2><ul class=”mol-bullets-with-font”><li class=”class”><strong>Fears hard-up shoppers will be tempted into taking on debt they cannot afford</strong></li><li class=”class”><strong>Research suggests a quarter spend more than they planned </strong></li><li class=”class”><strong>Instagram ‘influencers’ probed for promoting checkout lending giant Klarna </strong></li><li class=”class”><strong>They urged followers to take on debt as a way of keeping cheerful in lockdown </strong></li></ul><p class=”author-section byline-plain”>By <a href=”https://www.dailymail.co.uk/home/search.html?s=&authornamef=Ben+Wilkinson” class=”author” rel=”nofollow”>Ben Wilkinson</a> and <a href=”https://www.dailymail.co.uk/home/search.html?s=&authornamef=Fiona+Parker+For+The+Daily+Mail” class=”author” rel=”nofollow”>Fiona Parker For The Daily Mail</a> </p><p class=”byline-section”><span class=”article-timestamp article-timestamp-published”> <span class=”article-timestamp-label”>Published:</span> <time datetime=”2020-12-15T22:01:00+0000″> 22:01 GMT, 15 December 2020 </time> </span> | <span class=”article-timestamp article-timestamp-updated”> <span class=”article-timestamp-label”>Updated:</span> <time datetime=”2020-12-16T09:26:01+0000″> 09:26 GMT, 16 December 2020 </time> </span> </p> <!– ad: https://mads.dailymail.co.uk/v6/de/money/moneycardsloans/article/other/para_top.html –> <div itemprop=”articleBody”><div class=”mol-img-group floatRHS”> <div class=”mol-img”> <div class=”image-wrap”> <img id=”i-e7182400ebdefd58″ src=”https://i.dailymail.co.uk/1s/2020/12/15/21/36886186-9055863-image-a-6_1608067556515.jpg” height=”417″ width=”306″ alt=”Insta fan: Claire Menary: who has 34,000 followers, has promoted Klarna” class=”nothing”> </div> </div> <p class=”imageCaption”>Insta fan: Claire Menary: who has 34,000 followers, has promoted Klarna </p></div><p class=”mol-para-with-font”>They are the glamorous social media stars with the picture-perfect lifestyles that attract thousands of aspiring young followers.</p><p class=”mol-para-with-font”>Yet their posts are now being investigated by the advertising watchdog over fears they irresponsibly promoted ‘buy-now, pay-later’ credit as a way to feel better in the pandemic. </p><p class=”mol-para-with-font”>Business is booming for buy-now, pay-later lenders that allow shoppers to delay paying for goods. But the meteoric rise of the unregulated checkout credit providers in the pandemic is causing increasing concern.</p><p class=”mol-para-with-font”>And with Christmas fast approaching after a tough year, campaigners fear hard-up shoppers will be tempted to take on debt they will not be able to pay off next year.</p><p class=”mol-para-with-font”>The Advertising Standards Authority (ASA) is investigating four Instagram ‘influencers’ for pushing Swedish checkout lending giant Klarna as a way to lift spirits in lockdown.</p><p class=”mol-para-with-font”>One being looked into is Claire Menary’s April post: ‘Thank you @klarna.uk for the simple reminder that getting dressed up can be a total mood booster.'</p><p class=”mol-para-with-font”>Aisha Master, wrote a post promoting beauty face masks that was sent to the ASA: ‘A great investment mask, made easier with @klarna.uk. Brighten up your lockdown days by heading over to their page.'</p><p class=”mol-para-with-font”>While Instagram user Bradley Harper told his thousands of followers: ‘@klarna.uk helping me get ready for the day ahead in lockdown and lifting my mood!'</p><p class=”mol-para-with-font”>And in a video for Klarna, influencer Yasmin Fatollahy told fans: ‘It is so important to stay positive and just have a little bit of fun.'</p><p class=”mol-para-with-font”>We contacted all four influencers about the story. Claire Menary did not return our messages, while Aisha Master, Bradley Harper and Yasmin Fatollahy declined to comment.</p><p class=”mol-para-with-font”>Klarna admitted to Money Mail that the posts ‘missed the mark’.</p><p class=”mol-para-with-font”>Labour MP Stella Creasy, who made the complaints about the posts to the ASA, wants to see buy-now, pay-later firms regulated urgently.</p><p class=”mol-para-with-font”>She says: ‘Encouraging people to spend money to make themselves feel better, when many have lost their jobs and the cost of borrowing isn’t clear, is a crisis waiting to happen. </p><p class=”mol-para-with-font”>’This Christmas, these companies will likely have a bonanza, but consumers will likely be paying the price for many months afterwards.'</p><p class=”mol-para-with-font”>Klarna avoids conventional credit regulation because it does not charge interest. It now has an unavoidable presence — with hundreds of major retailers offering shoppers the chance to delay payment and split bills into smaller chunks.</p><p class=”mol-para-with-font”>Checkout lenders thrive online — particularly with fashion retailers since coronavirus has forced shoppers off the High Street, but Money Mail also found adverts targeting customers in stores.</p><div class=”artSplitter mol-img-group”> <div class=”mol-img”> <div class=”image-wrap”> <img id=”i-e20c22b65d2551f3″ src=”https://i.dailymail.co.uk/1s/2020/12/15/21/36886194-9055863-image-a-3_1608067517683.jpg” height=”423″ width=”634″ alt=”Credit giant: There are fears shoppers are encouraged to spend more than they need, and have taken credit without realising because retailers could set Klarna as the default for payments” class=”nothing”> </div> </div> <p class=”imageCaption”>Credit giant: There are fears shoppers are encouraged to spend more than they need, and have taken credit without realising because retailers could set Klarna as the default for payments</p></div><p class=”mol-para-with-font”><span class=”mol-style-medium mol-style-bold”>One click away from debt</span></p><p class=”mol-para-with-font”>Major retailers offering buy-now, pay-later services at the checkout include Marks & Spencer, H&M, River Island, Made.com and Asos. </p><p class=”mol-para-with-font”>You have to be over 18, and are limited as to how much you can borrow. Online payments firm PayPal has also launched a similar service – spend from £45 to £2,000, and pay in three monthly interest-free instalments.</p><p class=”mol-para-with-font”>But there are fears shoppers, especially younger ones, are encouraged to spend more than they need, and have inadvertently taken credit without realising because retailers could set Klarna as the default for payments. Klarna has just stopped retailers from using its service as the go-to option for new customers.</p><p class=”mol-para-with-font”><span class=”mol-style-medium mol-style-bold”>Lack of a proper credit check</span></p><p class=”mol-para-with-font”>Checkout credit lenders, which also include Clearpay and Laybuy, make their money by taking a slice from the retailers’ sales.</p><div class=”moduleHalf”><div class=”money item html_snippet module”> <a rel=”nofollow noreferrer noopener” target=”_blank” href=”https://www.thisismoney.co.uk/podcast”> <img border=”1″ src=”https://img.thisismoney.co.uk/modulepix/podcast.jpg” width=”308″ height=”208″ target=”_blank”> </a> </div> </div><p class=”mol-para-with-font”>One aspect of its appeal is that shoppers who want to ‘try-before-they-buy’ only have to pay for items they keep. </p><p class=”mol-para-with-font”>But to offer the short-term loans, firms do not need to do a proper credit check – so previous debt struggles might go unnoticed. </p><p class=”mol-para-with-font”>The money is later taken automatically from the card you give at the till. Klarna, which now has eight million UK customers, does not charge for late payments, but Clearpay and Laybuy both charge £6 for every instalment missed.</p><p class=”mol-para-with-font”>Your credit score could suffer if payment cannot be taken, and debt collectors could be sent to your home.</p><p class=”mol-para-with-font”>And shoppers using checkout credit do not have the usual consumer protection as the industry isn’t regulated.</p><p class=”mol-para-with-font”>With all the risks, campaigners say they are concerned about marketing credit products to young shoppers — some social media stars fail to make it clear they are advertising potentially risky credit products to their many fans.</p><p class=”mol-para-with-font”>Personal finance campaigner Alice Tapper says: ‘It is numbing the pain of spending. There is no question they promote overspending in an unhealthy way. As we approach Christmas, shoppers will be using buy-now, pay-later to purchase presents but many are storing up trouble for the New Year.</p><p class=”mol-para-with-font”>’The ‘buy-now, worry-later’ mindset many of these brands have promoted is extremely dangerous.</p><p class=”mol-para-with-font”>’This, in tandem with the lack of regulation and the current economic climate has created a perfect storm.'</p><div class=”artSplitter mol-img-group”> <div class=”mol-img”> <div class=”image-wrap”> <img id=”i-3b450e9176313c1e” src=”https://i.dailymail.co.uk/1s/2020/12/15/17/36878034-9055863-image-a-1_1608052305204.jpg” height=”423″ width=”634″ alt=”Research from consumer lobby group Which? found 24% of buy-now, pay later customers spent more than they planned, with 11% having been hit with late charges” class=”nothing”> </div> </div> <p class=”imageCaption”>Research from consumer lobby group Which? found 24% of buy-now, pay later customers spent more than they planned, with 11% having been hit with late charges</p></div><p class=”mol-para-with-font”><span class=”mol-style-medium mol-style-bold”>Will action come far too late?</span></p><p class=”mol-para-with-font”>The Financial Conduct Authority (FCA) regulator has launched a review into the unsecured credit market, and the Committee of Advertising Practices recently issued guidance to make it clear shoppers should understand they are being sold a form of credit. </p><p class=”mol-para-with-font”>Money Mail has found buy-now, pay-later firms are using Christmas to promote their products. Klarna has launched a Christmas competition giving away prizes to followers. </p><p class=”mol-para-with-font”>While in a post on Instagram, Clearpay wrote: ‘Go on, spoil someone this Christmas. Gift-now, pay-later’.</p><p class=”mol-para-with-font”>Laybuy, which allows shoppers to pay for purchases over six weekly instalments, also posted: ‘Get everything you need for the festive season by paying in 6 with Laybuy.'</p><p class=”mol-para-with-font”>Legislation from the 1970s rules that short-term credit with no interest falls outside of the regulatory remit. </p><p class=”mol-para-with-font”>It means shoppers using buy-now, pay-later cannot complain to the financial ombudsman, and aren’t guaranteed their money back if anything goes wrong.</p><p class=”mol-para-with-font”>Money Saving Expert Martin Lewis has compared the sudden rise of buy-now, pay-later to the explosion once seen with the extortionate payday loan firms.</p><p class=”mol-para-with-font”>Last week he warned MPs on the Treasury committee that it was the ‘fastest growing form of credit in the country’ and called for firms to be regulated with ‘maximum speed’.</p><p class=”mol-para-with-font”>He said: ‘My issue is that just like payday lenders, it will be too late. We are in an explosion of this type of credit — this is absolutely huge.'</p><p class=”mol-para-with-font”>He also criticised Klarna for using social media stars to advertise, adding: ‘This is fundamentally inappropriate for a credit provider.'</p><p class=”mol-para-with-font”>Mel Stride, chairman of the Treasury committee, told Money Mail: ‘Many may buy into this credit without fully understanding it comes with risks as well as benefits.'</p><h2 class=”mol-para-with-font mol-style-subhead”>The till toll on mental health</h2><div class=”mol-img-group floatRHS”> <div class=”mol-img”> <div class=”image-wrap”> <img id=”i-fdffef97992edc9d” src=”https://i.dailymail.co.uk/1s/2020/12/16/09/36907990-9055863-Treasury_Select_Committee_chair_Mel_Stride_said_many_took_out_bu-m-3_1608110673696.jpg” height=”306″ width=”306″ alt=”Treasury Select Committee chair Mel Stride said many took out ‘buy-now, pay later’ credit without understanding its risks” class=”nothing”> </div> </div> <p class=”imageCaption”>Treasury Select Committee chair Mel Stride said many took out ‘buy-now, pay later’ credit without understanding its risks</p></div><p class=”mol-para-with-font”>Research from consumer lobby group Which? found 24 per cent of buy-now, pay-later customers spent more than they planned, with 11 per cent having been hit with late charges.</p><p class=”mol-para-with-font”>And 13 per cent used buy-now, pay-later inadvertently because it was the default payment at checkout. One shopper said: ‘It felt like I was tricked into it because the box was already ticked.'</p><p class=”mol-para-with-font”>Meanwhile, research by the Money and Mental Health policy institute found 56 per cent of Britons thought the checkout credit providers made it too easy to get into debt. </p><p class=”mol-para-with-font”>It also found 42 per cent of those with recent mental health problems said buy-now, pay-later had been harder to resist in the pandemic.</p><p class=”mol-para-with-font”>Chief executive Helen Undy says: ‘Our concern is that it’s very easy to take this credit out – but it’s difficult to keep track of what you’re borrowing, understand all the terms and conditions, or make sure it’s kept to an amount you can afford.</p><p class=”mol-para-with-font”>’Simple steps like giving people the option to opt out of ‘Buy-Now-Pay-later’ deals, or not making them the default option at checkout, could help people avoid serious financial harm.'</p><p class=”mol-para-with-font”>Debt charity StepChange, has seen an increase in people struggling with buy-now, pay-later loans. Sue Anderson, from the charity, says: ‘Bear in mind the main benefit to retailers of offering these services is to sell more goods.'</p><p class=”mol-para-with-font”>Jenny Ross, Which? Money editor, says: ‘Given that many people’s finances are stretched now more than ever, the FCA needs to regulate this market to ensure consumers are not harmed and that action can be taken if these firms are treating customers unfairly.'</p><div class=”artSplitter mol-img-group”> <div class=”mol-img”> <div class=”image-wrap”> <img id=”i-6006d7fce4ebaf21″ src=”https://i.dailymail.co.uk/1s/2020/12/15/17/36878074-9055863-image-a-2_1608052413997.jpg” height=”423″ width=”634″ alt=”Buy now pay later: Campaigners now fear that the credit industry will be tempting hard-up shoppers to take on debt they cannot afford to pay off in the New Year” class=”nothing”> </div> </div> <p class=”imageCaption”>Buy now pay later: Campaigners now fear that the credit industry will be tempting hard-up shoppers to take on debt they cannot afford to pay off in the New Year</p></div><p class=”mol-para-with-font”><span class=”mol-style-medium mol-style-bold”>Better than a credit card? </span></p><p class=”mol-para-with-font”>Buy-now, pay later firms argue their quick and easy loans are a better alternative to using a credit card – despite many card lenders also not charging interest for a short period.</p><p class=”mol-para-with-font”>Alex Marsh, from Klarna UK, says the firm is a fully licensed bank and would support regulation of its buy-now, pay-later products.</p><p class=”mol-para-with-font”>He says: ‘Our branding is not targeted at the young. Klarna is for anyone, over 18, who values convenience and flexibility when shopping. </p><p class=”mol-para-with-font”>We work with influencers, as they are now part of the marketing mix for many organisations including other regulated institutions – 47 per cent of 30 to 49-year-olds are on Instagram.'</p><div class=”art-ins mol-factbox floatRHS money” data-version=”2″ id=”mol-84b70da0-3ef9-11eb-9a6c-e9e8dec34a5e” data-permabox-url=”https://www.thisismoney.co.uk/money/cardsloans/article-9055863/Celebrity-social-media-pushing-buy-pay-later-credit.html”> <h3 class=”mol-factbox-title”>Credit by numbers </h3> <div class=”ins cleared mol-factbox-body”><ul class=”mol-bullets-with-font”><li class=”class”>1 million transactions are processed by Klarna every day globally.</li><li>1 in 4 buy-now, pay-later customers says it makes them spend more.</li><li class=”class”>2 in 5 shoppers are unaware that buy-now, pay-later firms can pass unpaid bills to debt collectors.</li><li>1 in 10 customers has used buy now, pay later without realising.</li><li>23 per cent of 18 to 24-year-olds turned to buy-now, pay-later services to fund their spending during lockdown.</li><li class=”class”>45 per cent of young people who used a buy-now, pay-later scheme in the past year have missed at least one payment.</li><li class=”class”>Sources: Klarna / Which? / Compare The Market</li></ul> </div> </div><p class=”mol-para-with-font”>A Klarna spokesman adds: ‘We understand our obligations and take our role as an advertiser extremely seriously, particularly in the context of supporting responsible spending and financial well-being in what’s been a unique and challenging year for UK consumers.</p><p class=”mol-para-with-font”>’We perform rigorous eligibility checks on every purchase to make sure customers are protected and not over-extended. </p><p class=”mol-para-with-font”>Any customer whose circumstances change after a purchase and is concerned about their ability to make payments should contact us. We have a dedicated expert team who can provide help and advice and work with the customer to find a solution.</p><p class=”mol-para-with-font”>’In 2020, the single largest marketing investment we made was in KlarnaSense, a campaign to address impulse shopping. </p><p class=”mol-para-with-font”>’We thought long and hard about the text of the posts which were subsequently investigated by the ASA. It was a genuine attempt to recognise the mood of many consumers at the start of the first lockdown. </p><p class=”mol-para-with-font”>’We recognise that while we had the best of intentions, we missed the mark with the four posts the ASA looked into.'</p><p class=”mol-para-with-font”>Gary Rohloff, co-founder of Laybuy, told Money Mail the service could help people budget better and spread the cost of things they need but can’t afford to pay for upfront.</p><p class=”mol-para-with-font”>He also says he would have no problem with regulation.</p><p class=”mol-para-with-font”>A Clearpay spokesman says: ‘Clearpay works closely with the ASA to ensure our adverts follow guidelines and only promote our product as a budgeting tool to encourage on-time payments.</p><p class=”mol-para-with-font”>’Our business model relies on our customers paying on time as we do not charge interest, and as such our adverts encourage responsible spending.'</p><p class=”mol-para-with-font”>b.wilkinson@dailymail.co.uk</p><div class=”moduleFull”><div class=”money item html_snippet module”> <style>
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Barclays hit with £26m fine over poor treatment of indebted borrowers
https://www.dailymail.co.uk/money/cardsloans/article-9055121/Barclays-hit-26m-fine-poor-treatment-indebted-borrowers.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 https://www.dailymail.co.uk/money/cardsloans/article-9055121/Barclays-hit-26m-fine-poor-treatment-indebted-borrowers.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 <h2>Barclays hit with £26m fine over poor treatment of indebted borrowers for four years while some HSBC customers are receiving £100 payouts</h2><ul class=”mol-bullets-with-font”><li class=”class”><strong>The fine could have been as much as £37m had it not already paid out millions </strong></li><li class=”class”><strong>The FCA said the bank had risked making customers’ financial positions worse </strong></li><li class=”class”><strong>HSBC is also writing to borrowers who were given poor service between 2010 and 2019 – the letters and cheques are not a scam</strong></li></ul><p class=”author-section byline-plain”>By <a href=”https://www.dailymail.co.uk/home/search.html?s=&authornamef=George+Nixon+For+Thisismoney.co.uk” class=”author” rel=”nofollow”>George Nixon For Thisismoney.co.uk</a> <a rel=”nofollow noreferrer noopener” target=”_blank” href=”https://twitter.com/intent/follow?screen_name=George_Nixon97&tw_p=followbutton” class=”twitter-follow-author”><span class=”follow-author”></span></a> </p><p class=”byline-section”><span class=”article-timestamp article-timestamp-published”> <span class=”article-timestamp-label”>Published:</span> <time datetime=”2020-12-15T12:04:07+0000″> 12:04 GMT, 15 December 2020 </time> </span> | <span class=”article-timestamp article-timestamp-updated”> <span class=”article-timestamp-label”>Updated:</span> <time datetime=”2020-12-15T13:12:04+0000″> 13:12 GMT, 15 December 2020 </time> </span> </p> <!– ad: https://mads.dailymail.co.uk/v6/de/money/moneycardsloans/article/other/para_top.html –> <div itemprop=”articleBody”><p class=”mol-para-with-font”>Barclays has been hit with a £26million fine by regulators after four years of poor treatment of customers who fell behind on their borrowing.</p><p class=”mol-para-with-font”>The Financial Conduct Authority said business and personal customers who fell into arrears on their borrowing between April 2014 and December 2018 were not properly contacted by the bank.</p><p class=”mol-para-with-font”>It added that the banking giant failed to help customers understand why they had fallen into arrears and had offered unaffordable or unsustainable ways out of debt.</p><div class=”artSplitter mol-img-group”> <div class=”mol-img”> <div class=”image-wrap”> <img id=”i-e3e0265865175103″ src=”https://i.dailymail.co.uk/1s/2020/12/15/11/36865192-9055121-image-a-9_1608032121319.jpg” height=”423″ width=”634″ alt=”Barclays was hit with a £26m fine by the Financial Conduct Authority over poor treatment of consumer credit borrowers” class=”nothing”> </div> </div> <p class=”imageCaption”>Barclays was hit with a £26m fine by the Financial Conduct Authority over poor treatment of consumer credit borrowers </p></div><p class=”mol-para-with-font”>Lenders are required to take measures to properly understand customers’ financial difficulties and show forbearance and due consideration to customers in arrears or financial trouble.</p><p class=”mol-para-with-font”>Otherwise, those facing financial pressures could end up making payments on a credit card or personal loan at the expense of a priority debt, such as a mortgage, council tax, child support and utility bills.</p><p class=”mol-para-with-font”>The FCA said the bank, which accepted its findings, could have been charged up to £37.2million for its treatment of customers if it had not paid out more than £273million to 1.53million borrowers over the last three years in its own programme of redress and settled the case.</p><p class=”mol-para-with-font”>All customers who are due compensation have been contacted, the regulator said.</p><p class=”mol-para-with-font”>The regulator’s executive director of enforcement, Mark Steward, said: ‘Consumers should feel reassured that their lender will work with them to help resolve any financial difficulties, whereas Barclays’s poor treatment of its customers risked making these difficulties worse.</p><p class=”mol-para-with-font”>’Firms must treat consumer credit customers fairly, including when they find themselves in arrears. We will take action against unfair treatment, or where firm systems expose customers to the risk of unfairness.</p><p class=”mol-para-with-font”>’While this case predates the pandemic, this message is especially important as the impact of coronavirus continues to affect household incomes and budgets.'</p><p class=”mol-para-with-font”>Barclays had handed out over 640,000 holidays to borrowers worldwide since March, according to its latest results. </p><p class=”mol-para-with-font”>As of the end of this September, £4.4billion worth of UK mortgages and £100million of credit card balances remain on payment holidays.</p><p class=”mol-para-with-font”>Across all major UK lenders, the number of mortgage holidays still in place had fallen to 127,000 by 20 November and the number of credit card holidays to 55,000, according to the trade body UK Finance.</p><p class=”mol-para-with-font”>Those who have not yet had a full six-month payment holiday can still apply for one up until the end of next March, while those who have were urged by UK Finance to contact their lender.</p><p class=”mol-para-with-font”>Barclays said in a statement: ‘Barclays is a responsible lender and we strive to achieve good outcomes for our customers. </p><div class=”moduleHalf”><div class=”money item html_snippet module”> <a rel=”nofollow noreferrer noopener” target=”_blank” href=”https://www.thisismoney.co.uk/podcast”> <img border=”1″ src=”https://img.thisismoney.co.uk/modulepix/podcast.jpg” width=”308″ height=”208″ target=”_blank”> </a> </div> </div><p class=”mol-para-with-font”>’Since the issue was first identified, we have implemented a number of changes to our customer journeys, systems, processes and colleague training to correct it, and the vast majority of customers who were impacted have already been contacted.</p><p class=”mol-para-with-font”>’We would like to apologise to those customers for not providing the level of service we should have.'</p><h2 class=”mol-para-with-font mol-style-subhead”>HSBC also refunds badly treated borrowers </h2><p class=”mol-para-with-font”>Meanwhile an undisclosed number of HSBC, First Direct, M&S Bank and John Lewis Finance borrowers who found themselves in arrears over the last decade are receiving payouts through the post – but this is not as part of an FCA probe.</p><p class=”mol-para-with-font”>The news has so surprised some recipients, many of whom are no longer with the bank, that they have wondered if the letters are a scam.</p><p class=”mol-para-with-font”>One man, Nick Redman, tweeted at the end of last month: ‘Just got a £25 cheque out of the blue from HSBC. I haven’t banked with them for around 6 years and they’ve somehow got my new address which I only moved to in August. I’m confused now.'</p><div class=”artSplitter mol-img-group”> <div class=”mol-img”> <div class=”image-wrap”> <img id=”i-bb037da5c0c58c63″ src=”https://i.dailymail.co.uk/1s/2020/12/15/11/36865220-9055121-image-m-10_1608032218524.jpg” height=”419″ width=”634″ alt=”HSBC is also sending cheques of up to £100 to customers who fell into arrears between 2019 and 2019 – some of whom have not been with the bank for years” class=”nothing”> </div> </div> <p class=”imageCaption”>HSBC is also sending cheques of up to £100 to customers who fell into arrears between 2019 and 2019 – some of whom have not been with the bank for years </p></div><p class=”mol-para-with-font”>However HSBC, which runs all four banks, said an internal review found customers in arrears had received poor service between 2010 and 2019 and would be sent cheques of between £25 and £100 as a goodwill payment.</p><p class=”mol-para-with-font”>Anyone who is due compensation will be contacted and sent a letter in the post along with the cheque.</p><p class=”mol-para-with-font”>The bank said in a statement: ‘We always strive to do the right thing by our customers. Regrettably, some historic cases where customers were in arrears at times fell short of this commitment.</p><p class=”mol-para-with-font”>’We are taking action to put that right and remediate customers who may have been impacted. Customers do not need to do anything.'</p><div class=”moduleFull”><div class=”money item html_snippet module”> <style>
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