A U.K. Treasury department spokesperson said the government will set out plans to regulate "buy now, pay later" plans "shortly."
    • no banana@lemmy.worldEnglish
      362·
      3 months ago

      I personally find it incredibly useful, but I agree that it should be regulated. It is very obvious that the way these systems work currently is not in the interest of the citizens, judging by the numbers of people who go into a debt spiral they cannot resolve. Just because it’s useful for my case doesn’t mean that it should stay as it is.

      • cynthorpe@discuss.onlineEnglish
        201·
        3 months ago

        Providing easier access to credit encourages higher prices. It also has a negative effect on the less money-minded person, who then never learns the concept of saving. It also reinforces the “now now now” concept of consumerism.

        The only thing my crappy mother actually taught me, through her own credit card debt, was that if I don’t have the cash, I don’t get the thing. Easier said than done, I know.

        • no banana@lemmy.worldEnglish
          21·
          3 months ago

          I don’t disagree with your comment in any way. It’s a complex situation, and there are positives and negatives to doing it this way.

        • no banana@lemmy.worldEnglish
          6·
          3 months ago

          Sure! I use it “as intended”. I pay later. But I only use it when I know that there’s going to be money later (I have money now) and I plan my economy pretty thoroughly. It gives me some extra space when I need it, and makes it so I don’t have to put out my own money to companies I haven’t purchased from before, which can be useful since I tend to look for the best deal available and that often leads me to smaller shops that have no ratings or other reputation online.

          • Domi@lemmy.secnd.meEnglish
            4·
            3 months ago

            Is there an advantage to buying from unknown shops via Klarna as opposed to paying directly? Does Klarna deal with any dispute or do they demand the money from you anyway?

        • Murvel@lemm.eeEnglish
          22·
          3 months ago

          I can get the product in my hands before paying for it, so I can verify it’s what I wanted. I also don’t spread my debit card info around.

          • Domi@lemmy.secnd.meEnglish
            2·
            3 months ago

            Assuming it’s not what you wanted, does Klarna deal with the seller in case of a dispute or are you stuck dealing with the seller while still having to pay Klarna?

            • Murvel@lemm.eeEnglish
              3·
              3 months ago

              I simply don’t pay the invoice and send the product back. I never fronted any money.

    • Martin@feddit.nuEnglish
      201·
      3 months ago

      While I agree that increasing consumer debt is a problem, I think Klarna provides a valuable service for online shopping.

      I can get my goods delivered and inspect them before paying anything. If the goods are not as stated (or don’t arrive at all) I just dispute it and then it is Klarnas problem, I haven’t risked anything of my own money. If I had paid up front, I would have to try to get my money back. It’s almost always harder to get money back than to dispute and refuse to pay.

      Some regulations are welcome, but I don’t see BNPL as a bad concept in itself.

      • no banana@lemmy.worldEnglish
        11·
        3 months ago

        It’s the people they’re counting on not paying after the BNPL period is over that need more protection. That’s where the trap is, and where these actors make their money.

      • EtherWhack@lemmy.worldEnglish
        143·
        3 months ago

        Klarna is permanently on my do not trust list, as what I experienced told me they can’t manage their system correctly. And for someone who can put a derogatory mark on your credit, I’m not risking it.

        (Bear in mind when I got the first email, just to be safe, I paid off the remaining balance the Friday of that week.)

        I figured they caught and corrected it, so no harm, no foul.

        When I tried using them at the end of the month however, (I think for upgrading my comp) they rejected my finance request. I wasn’t sure, but I had my suspicions it was due to their fuck-up as I only used them once.

        3 weeks later, they sent this.

      • catloaf@lemm.eeEnglish
        101·
        3 months ago

        You can already do all that with a credit card, and your bank is more likely to side with you. Why not just use that? There’s several decades more regulation on credit cards, too.

        • Martin@feddit.nuEnglish
          3·
          3 months ago

          Mostly convenience, the Klarna app is miles ahead of what my bank offers.

        • Murvel@lemm.eeEnglish
          21·
          3 months ago

          That’s not even true. Oftentimes, the debit card transaction is completed long before the product arrives…

          • Crashumbc@lemmy.worldEnglish
            11·
            3 months ago

            You should never use a debit card, at least in the US. Always use a credit card.

            • Murvel@lemm.eeEnglish
              3·
              3 months ago

              Debit cards are defacto standard in the EU, far fewer uses credit cards.

  • Th4tGuyII@fedia.io
    19·
    3 months ago

    Too many people end up in debt spirals with these BNPL companies because there’s no consistent safeguards against it, so we absolutely should be regulating them better. We shouldn’t be leaving financially vulnerable people to the wolves.

  • EdanGrey@sh.itjust.worksEnglish
    16·
    3 months ago

    It’s way too easy to use these companies, so often klana comes up as an option as if it’s a payment method. There should be hoops to jump through before you can use these companies