10% of pay-later shoppers struggle with debt – report

However, with it comes an increasing number of them being chased by debt collectors, according to a Citizens Advice report.The body is calling for regulators to crack down on such easy-access credit and ensure there are clearer warnings to online shoppers who could be pursued for the money, The Times newspaper reported.

In a survey of 2,000 buy-now, pay-later users, Citizens Advice found 195 had been contacted by, or referred to, debt collectors. The charity also estimated that UK shoppers using the option were charged £39 million in late fees last year.Many shoppers have embraced the option to defer paying in full and pay in interest-free monthly instalments instead. But consumers are liable for the debt and can, in some cases, be charged late payment fees and also have their pe…