Celebrity social media pushing ‘buy now, pay later’ credit

Some 13,000 more people with problem debt could be allowed to ‘freeze’ their payments from next month under proposals published today by the Government.

Amex may have caught the eye of shoppers and takeaway fans this week after announcing one of its credit cards is now offering cashback when used for Deliveroo.

Although availability of interest-free deals and cards is low by historical standards, it has bounced back in recent months and there are now plenty of decent options, even if they aren’t as generous.

Amex’s market-leading cashback credit cards are getting a little less generous, with the provider slashing how much customers earn by as much as 50 per cent in some cases.

Britons with mounting debts will be able to ask for them to be put on hold for two months from today, after proposals two years in the making came into effect.

Barclaycard customers who have had their credit limits cut by as much as 95 per cent have faced yet more confusion, after wrongly being told new limits were based on their average balances.

Those looking to borrow to fund home improvements might not be able to take advantage of an interest-free advance from Conservative Party HQ, but they can benefit from a recent fall in loan rates.

Although a small percentage of the online credit market, the buy now, pay later sector has been booming, and everyone wants a slice of it, however controversial it has proven to be.

Checkout credit providers have been accused of making it too easy for young people to get into financial trouble, after research found they often didn’t realise they were taking on debt.

I have felt Barclaycard’s customer service disaster personally. My credit limit has been cut from £8,500 to £1,000 for no discernible reason.

Credit card provider Barclaycard is facing a mass exodus of loyal customers after suddenly slashing the credit limits of more than 100,000 customers by as much as 99 per cent.

Barclaycard customers have called on the provider to change its mind over its heavy-handed cutting of credit limits of cardholders whose financial circumstances have improved over the last year

One longstanding Barclaycard customer saw his limit cut from £11,000 to £300, while another’s was slashed from £8,500 to £1,000 without any checks on their finances.

Plans to regulate Britain’s booming buy now, pay later industry will be released within weeks, This is Money understands, after a review found it posed ‘a significant potential consumer harm’.

Credit card limits are tailored to individuals. Those with larger incomes and good repayment histories can usually borrow more; but limits can be cut if you fall behind on repayments.

45,000 investors in the now-defunct peer-to-peer lender RateSetter have had their accounts closed and their money returned after it was taken over by Metro Bank last August.

Hady Ahmad, 40, an oil industry engineer from West London, saw his income dry up towards the end of last February as the price of oil fell and travel restrictions were imposed due to the pandemic.

Klarna, which has more than 12 million UK customers, has the longest terms and conditions at 13,637 words and would take 57 minutes to read. The average word count is 8,673.

Roy made a claim for a cancelled New York trip in August 2020 with HSBC. However, he has been told he might not get a pay out until 2022.

Busted retailers and booming buy now, pay later payment methods has served to all but kill off the shop-branded credit card, new data suggests.

Britain’s largest guarantor lender Amigo Loans has been given the green light by the High Court to proceed with a scheme designed to cap the cost of compensation for mis-sold loans.

Regulators have been urged to crack down on ‘profiteering’ by Britain’s two largest card providers after Visa appeared to be joining Mastercard in massively hiking interchange fees this year.

John Lewis has launched a regulated online payment method in partnership with French bank BNP Paribas that will let customers borrow up to £35,000 to fund home improvements and pay it back over a year

Barclaycard, MBNA, Sainsbury’s Bank and Virgin Money have all increased the length of their 0% balance transfer and purchase terms since January.

The no-interest loan scheme was first unveiled by former Chancellor Philip Hammond in the 2018 Budget to help those below the poverty line access credit. But funding has only just been proposed.

Guarantor loans, which are typically taken out with the backing of a family member, were the most complained about finance product between October and December last year.

Thousands of Britons are complaining to the Financial Ombudsman Service about being mis-sold unaffordable guarantor loans, new figures reveal.

The schemes are expected to account for 10 per cent of UK online spending by 2024, the research predicts. The global report was compiled by payment processing technology provider Worldpay.

With high profile backers including Michael Sheen and Camilla, Duchess of Cornwall, credit unions have long been applauded for their co-operative membership model.

The Virgin Red scheme encourages people to visit its website or download the phone app – and buy goods and services offered by a number of online shops.

Insidious firms seeking to profit on people’s misery are using internet adverts to divert those struggling with money away from free help and advice and promising them easy ways to write of their debts.

Labour MP Stella Creasy and Tory MP Paul Maynard called for retailers to take further action after a review of buy now, pay later found it needed to be regulated ‘as a matter of urgency’.

Millions of Britons in need of debt advice due to the coronavirus pandemic could be pushed into unsuitable debt solutions by companies seeking to profit from commission, regulators have warned.

The Financial Conduct Authority has announced plans to regulate the buy-now-pay-later industry after purchases nearly quadrupled last year to £2.7bn as online shopping soared in lockdown.

Borrowers of Britain’s booming £2.7bn buy now, pay later industry will soon be able to complain to the Financial Ombudsman Service after it was announced lenders would be regulated.

A survey by AA Financial Services indicates that 40 per cent of adults are planning to borrow – with a new car, a holiday (travel restrictions permitting) and home improvements top of their purchase lists.

The websites ‘writeoffmydebt’ and ‘stepdebtsupport’ were criticised by the Advertising Standards Authority after a series of complaints.

American Express’ Nectar credit card is now one of the most generous ways of earning Avios points from everyday spending, with customers able to earn 1.25 Avios for every £1 they spend.

Sainsbury’s shoppers will be able to swap their groceries for getaways under a new tie-up announced between the supermarket’s Nectar scheme and British Airways.

Tesco Clubcard customers who wish to convert their points into Avios air miles have until midnight on Monday to do so before they can only swap them for Virgin Points.

The company, which last year took over the credit card business of Bank of Ireland in a £530million deal, says that a ‘small minority’ of customers were affected by the computer glitch.

Sainsbury’s Bank now offers the best 0% deal on the market, offering 29 months interest-free, after reopening its doors to non-Nectar customers last October.

The first step is to prioritise what you owe and not bury your head in the sand. We speak to the experts who give their advice for getting out of debt after a turbulent year.

In a year in which the world has never been sicker, Britain’s personal finances might end 2020 in a healthier state than they’ve ever been in before.

Daniel Robinson has seen £500 of his money lost by the credit card start-up, after he had not had any previous problems with the Post Office in the six years he had been with them.

Glamourous social media stars like Claire Menary (pictured), who attract thousands of aspiring followers are now under investigation over fears that they promoted ‘buy now, pay later’ credit.

The FCA said business and personal customers who fell into arrears on their borrowing between April 2014 and December 2018 were not properly contacted by Barclays..

I earned my voucher last year after spending £10,000 on my card, but cancelled the card this April. My account says the 2-4-1 voucher is still valid but Amex told me it wasn’t.

Mastercard is one step closer to having to pay out as much as £14bn in total to more than 46m UK adults after it lost a landmark Supreme Court case.

Delayed payment providers have been asked to revamp their marketing by next March to ensure users are not being misled.

Frequent flyers should be aware that some of the most well-known airline loyalty schemes have had several shake-ups recently, with British Airways and Tesco Clubcard set to part ways.

Thousands of borrowers have received refunds in recent months after holidays, concerts and shows were cancelled due to Covid. Many believe this refund will count as their payment for that month.

Credit card providers are stealthily slicing 0% balance transfer windows leaving borrowers facing shorter time periods in which to repay their debts.

Peter Wilson, 69, from Bury St Edmunds, Suffolk, had his IHG Rewards Creation credit card replaced in May after he noticed thousands of pounds of payments to Apple on his account.

The number of new ‘sub-prime’ borrowers taking out credit cards increased by 143% between August and September, according to Equifax, more than twice the jump in overall card openings.

Council tax payments and subscriptions to Amazon Prime, Netflix and Spotify could boost Britons’ credit scores from today under a new feature launched by one of the big three credit reference agencies.

Post Office, Bank of Ireland and AA customers were bought by Jaja when it took over the Bank of Ireland’s credit cards. But since the transfer customers have reported a plethora of issues.

Hundreds of thousands of people still on breaks from their mortgages and unsecured debts face a potential ‘lender lottery’ from next month as blanket protections are removed.

The Information Commissioners’ Office said it was ‘making enquiries’ into the Swedish firm after receiving more than 90 complaints from people who received its weekly deals email.

There are just 66 balance transfer cards currently on the market, compared with 94 last year, according to finance analysts Defaqto. The cards allow customers to shift their credit card debts to a new card.

Thousands of gamers who had hard credit checks run on them and were told a direct debit to pay for the console had been set up were emailed telling them their application had actually been unsuccessful

Consumers last week were subjected to hard credit checks and had direct debits set up to pay for the new console over two years, but were unable to actually purchase it after retailers ran out of stock.

Britons borrowed more on credit cards, loans and overdrafts last month compared to July and saved less, official figures revealed, amid concerns household finances are increasingly under strain.

Thousands of shoppers who tried to pre-order the latest Microsoft Xbox were left fearing for the state of their credit scores after a bungle between high street retailers and the ‘buy now, pay later’ service Klarna.

Despite its considerable travel benefits it is perhaps no wonder some may wish to ditch the American Express Preferred Rewards Gold card when they have claimed all of the bonuses they can.

Google is still making thousands from unregulated firms posing as legitimate charities, nearly a year on from introducing new guidelines which it said would help end the practice.

Figures from the credit rating agency Experian found half of consumers who searched for a credit card last month were shown at least one they were guaranteed to get, up from 24% in July.

Experts said Britain’s borrowing habits ‘will have changed permanently’ as a result of the coronavirus pandemic.

The credit reference agency said the amount people owed in non-mortgage borrowing fell from £11,615 to £9,681 between the 23 March lockdown and 8 June.

To tempt shoppers back to high streets, credit card giant American Express has launched a reward deal for customers who spend money in local stores and restaurants.

Diners looking to take advantage of the Government’s 50% discount scheme from Monday should know they can get an additional £5 off at certain shops, provided they use their credit card.

Hundreds of thousands of customers of Barclays and Santander have taken payment holidays, as official figures found consumers had cleared billions of pounds of debt over the last few months.

Due to the rise of buy now, pay later schemes, more people are purchasing items without paying for them at the time, despite this technically putting many into debt.

The Swedish company, one of Europe’s most successful start-ups with 8.6million UK users, has been on the back foot over the last few months amid claims it encourages more than they can afford.

The market research company Kantar estimated in May a fifth of all UK households had signed up to a TV streaming service like Amazon Prime, Netflix or the newly launched Disney+ since lockdown.

While people struggling financially will be able to ask for support and still take advantage of a £500 interest-free overdraft until October, many borrowers are in for a shock as banks hike the cost of overdrafts.

In a challenge to the big banks, peer-to-peer lender Zopa plans to launch its first credit card later this year.

Hard-up credit card and personal loan borrowers will be able to put their payments on hold for another three months, the FCA has confirmed.

Credit card rates hit a record high this month despite a record low base rate as providers hiked the cost of borrowing for those with poor credit histories or turned down by mainstream banks.

The Government should hand out £5bn in grants to those hardest hit financially so they can repay their debts and pay bills, StepChange says.

Credit card and loan borrowers may be able to put their payments on hold until the end of September, under plans reportedly being considered by banks and regulators.

Unscrupulous advertisers are mimicking the names of legitimate debt charities, research has revealed, raising fears that vulnerable people looking for help are at risk of bad advice.

Britain’s £221billion consumer debt pile shrank by nearly £7.5billion in April, the largest fall ever recorded by the Bank of England, as households took repayment holidays and cut their spending.

Amigo has seen an increase in new complaints made about it to the Financial Ombudsman Service over the last few years

The app is intended to build up your Experian credit score using a monthly fee closer to a subscription service than a credit card. In fact, it doesn’t even give you a card to buy things.

The number of interest-free credit card deals has fallen to a record low for the second successive month, as banks continue to slash the availability of unsecured debt.

The airline said the actual rate of Avios that you get for the price of your flight is roughly double what you would normally get if you bought Avios using cash.

Although Virgin Atlantic looks a little more secure, with the prospect of cancelled holidays for a while to come, some may be wondering if there are alternative uses for their thousands of air miles.

Former financial ombudsman Walter Merricks is taking Mastercard to court, claiming unlawful fees it charged shops between 1992 and 2008 resulted in consumers paying more.

Virgin Money apologised and reversed its decision, saying that everyone who had their card suspended will be able to use them to make purchases again from Saturday 9 May.

While borrowers make no payments for three months, card providers often still charge interest on balances during payment holidays, meaning borrowers continue to rack up interest

Customers of Virgin Money rounded on the bank after it suspended their credit cards, despite many of them not struggling with their repayments and clearing their balance in full.

Newcomers to American Express now have more time to rack up points bonuses for their credit card spending, with the card provider doubling the length of some of its welcome offers.

Households paid back a whopping £3.8bn more than they borrowed in March, the biggest figure on record, as households shunned their credit cards in the face of the coronavirus crisis.

Banks and credit card providers may levy fees on refunds as well as purchases, meaning a double whammy of charges on trips hit by coronavirus.

The UK arm of Santander revealed its pre-tax profit fell 58 per cent to £114million in the first three months of 2020.

The Financial Conduct Authority said many were encouraged by the publicity blitz it launched in the summer of 2019 to warn consumers that they had limited time left to make a complaint.

Next to a picture on social media app Snapchat of Ryan Reynolds teasing news about upcoming superhero film Deadpool 3, is a ‘sponsored’ post with its own teaser: that you can write off debt.

The Bank of England’s latest credit conditions survey revealed lenders believe the availability of household unsecured credit will decrease between April and June amid coronavirus.

Neil Seagrave, 35, from Dorset, tried to transfer his credit card balance to HSBC at the start of March before his zero-interest term with Sainsbury’s Bank expired, but this was not resolved until April.

Barclaycard, Sainsbury’s Bank and Tesco Bank have cut interest-free deals over the last month, some of which are the best around, as lenders evaluate their offers amid the coronavirus outbreak.

The FCA today brought in measures which offer consumers struggling with their finances bigger fee-free overdrafts and the ability to freeze credit and loan repayments for three months.

The UK economy is built on spending, often fuelled by debt – credit cards, personal loans, car finance. We don’t want to shrink it, only keep it manageable; and keep the Jenga tower from falling.

The FCA this morning proposed banks should offer customers in financial difficulty an interest-free overdraft up to £500, and let them put credit card and loan repayments on hold for three months.

The Foreign Office has now advised against all overseas travel, it’s likely cancelling holidays is further up people’s priorities than booking new ones – so what can air miles be spent on?

Payment providers across the UK have upped their contactless payment limits from £30 to £45 in an effort to help customers cut down on cash usage. 

Many of us know that having a good credit score is key to getting accepted for the cheapest cards, loans and mortgages but many still believe in common credit score myths.

People applying for credit cards with two major UK lenders have to roll the dice to check if they will be accepted, putting their credit score at risk in the process.

The white plastic-looking ‘K ring’ (pictured) – which also comes in black costs £99.99. It is both waterproof and scratch-resistant and can be used to make contactless purchases.

Credit card customers of high street bank Halifax have reportedly been hit by charges when trying to make Klarna repayments, the buy now, pay later firm said.

A shopper who used buy now, pay later service Klarna to pay for a £199 vacuum cleaner in three ‘interest-free’ instalments was left confused after he was charged an extra 4.5%.

Mature student Tamara Gray, 29, (pictured) got into financial difficulties after spending several thousand pounds on the websites Very and Shop Direct on a buy-now, pay-in-12-months basis.

Buy now, pay later has become the way for the younger generation to pay. Is it a dangerous form of credit or a useful way for shoppers to pay flexibly?

UCAS will stop sending out emails advertising private student loan provider Future Finance, the student charity announced today, following a backlash over the promotions

TSB is looking at launching a range of short-term loans aimed at families who regularly dip into their overdraft. TSB customers can currently borrow between £7,500 and £50,000.

The Financial Conduct Authority has told banks to help customers get out of debt, amid concerns of a potential wave of credit cards being scrapped under new rules.

The charity in charge of dealing with higher education applications is still promoting private loan companies to university students, despite criticism of the practice just five months ago.

Lloyds, Santander, Nationwide, NatWest, Virgin Money, HSBC and Barclaycard all confirmed staff cannot unblock credit cards in branch.Some banks say it must now be done by a specialist team.

The average Briton wastes £640 a year on unwanted subscriptions. Nearly 12million of us have less than £100 in savings. Here is our wealth workout to help you reach peak financial fitness.

Almost 390,000 people who successfully complained about unaffordable loans from collapsed payday lender Wonga will soon find out their compensation.

In an unusual case, four decades of sticking with Lloyds Bank was the main reason behind a Hertfordshire man obtaining a £12,000 mis-sold PPI payout.

Visa’s scheme marks the first time all the UK’s banks will pay small stores to offer cashback. Beccy Soper (pictured), of Beccy’s Greengrocers in Stockbridge, Hampshire, said: ‘It’s a win-win’.

I have triggered a 10,000 point bonus for spending £15,000 on the card – but it says I can’t get them until August 2020 and only if I renew. However, I don’t want to pay the £140 annual fee for renewing.

Britain’s largest banking group, which owns Lloyds, Halifax and Bank of Scotland, spelled out changes aimed at those in ‘persistent debt’ for 36 months.

Hundreds of customers of Saga have received an unexpected windfall following its admission that it badly handled the axeing of its popular platinum credit card last year.

Frequent fliers after air miles towards their next holiday could take advantage of a new sign up bonus which could get them to three continents, provided they’re happy to pay a fee.

Those looking to cheaply clear their debts this January could take advantage of 0% balance transfer cards which charge no fees, provided they are happy to pay their balance off quicker.

A large number of buy now, pay later users do not know the full implications of missing payments while a large chunk don’t believe the terms and conditions are clear enough.

Britain’s debt binge has deepened – with figures last month showing credit card borrowing had surged by 40 per cent and the average family now owes £12,800 on credit cards, loans and car finance.

With nursery costs reaching as much as £12,000 parents are finding it difficult cope. But now a new provider enables employers to give interest-free loans to parents for childcare

There were 122 balance transfer offers in January 2017 compared to 76 today, according to figures from Moneyfacts – while the timeframe to pay back the debt has also shrunk.

Britons paid back more on their credit cards than they borrowed in November – the first time this has happened in more than six years, according to official figures.

If you are someone who is looking to start the new year by paying off more of their debt, This is Money and its personal finance experts are here to help.

Yesterday the Mail reported that nine million people will start the New Year owing between £2,000 and £10,000. A further five million owe more than £10,000.

Households have £45bn more debt on credit cards, personal loans and overdrafts compared to the start of 2010 – growth of 25% in 10 years, Bank of England data shows.

Frequent flyers who fancy adding to their Avios balance have been handed an enticing Christmas bonus by HSBC, though the chances are they don’t know it.

Asking for too many balance transfer cards can damage your credit rating. Experian has launched a service that lets people enter their details online, including how much debt they want to transfer.

Britons looking to borrow to fund a new car, home improvements or a big life event like a wedding will now find taking out a substantial sum is the cheapest it’s ever been.

The popularity of the likes of Klarna and other firms which let you spread the cost of purchases over instalments means credit card providers are increasingly adopting that model instead.

Smartphone bank Tandem is axing its cashback credit card for new customers, and from January those who want to use its successor will have to pay a membership fee.

Buy now, pay later juggernaut Klarna announced it has signed up over 60,000 retailers so far in 2019, including Microsoft and travel agent Expedia, as it prepares for a bumper Black Friday.

American Express and Vitality have launched a new cashback credit card with a difference. The more exercise you do, the more you earn – up to an eye-catching 3 per cent. But is it any good?

An app-based card provider which allowed users to pay with gold has been rescued from administration, having fought off a hostile takeover bid from one of its own creditors.

Love it or loathe it, Black Friday weekend is looming. This is when retailers are expected to shower shoppers with juicy discounts for a few days only.

Shoppers now pay an average of 25.1 per cent on credit card purchase. It means that a customer who borrowed £3,000 and paid off £100 a month would pay £1,463 in interest overall.

Have you ever checked your credit report?  If the answer is no, the likelihood is: someone else has. We reveal five top tips for those who have never cast an eye on their financial CV.

M&S.com has partnered with Clearpay on the new service with the payment option due to be available to all UK M&S.com customers from mid-November.

The Royal Mint announced it has teamed up with card providers Mastercard and Accomplish Financial to create ‘Raris’, aimed at high net worth individuals after something exclusive.

Britain’s biggest payday loan collapse since Wonga could be on the cards as QuickQuid is on the verge of going into administration, according to reports.

Ferry passengers incur the charge if they want to be dropped off or picked up by car, or park for the ferry at the end of the half-mile pier.