LONDON—Almost one-quarter of users of buy now, pay later (BNPL) financing in the United Kingdom have been charged late repayment fees, with younger consumers hit hardest, according to new research.
The research suggests more younger people are using BNPL financing to cope with rising living costs.
New research from the Centre for Financial Capability found 22% of BNPL users have missed one or more repayments in the six months to December 2023, the Financial Times reported.
Among the other findings:
- Of that 22%, more than one-quarter took a hit on their credit score as a result or were contacted by a debt collection agency, according to the survey. Of those who have missed repayments in the last six months, around two-thirds have missed payments twice or more.
- Young people were most likely to receive late fees, with 34% of users aged 18-34 charged for missing a repayment over the same period.
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