‘Irresponsible’ Klarna adverts banned by promoting watchdog

‘This ruling is a good start – but BNPL must be regulated’

Martin Lewis, founder of MoneySavingExpert.com, said: “Buy now, pay later (BNPL) shouldn’t be sold as a lifestyle choice, something cool, or a new high-tech way to pay. It should be seen for what it is – a debt. The ASA is right to rule on the back of Stella Creasy’s complaint that ‘mood-boosting’ advertising for a credit product, often targeted at younger adults, is wholly inappropriate.

“BNPL is designed to encourage increased spending, and can lead to overspending. Get BNPL wrong and missed payments can damage your credit file for the long term, see late payment fees levied and even debt collectors sent to your door. This ASA victory is a good start. Yet it’s outrageous that this, the UK’s fastest growing credit sector, is exempt from standard credit regulation. That must change. The Financial Conduct Authority should be overseeing product design and marketing. And crucially, consumers need a right to take complaints to the free and independent Financial Ombudsman Service.”

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