Katie Evans, Head of Research and Policy, Money and Mental Health
Buy now, pay later: Problems with the point of sale credit market
22 May 2017
From store cards to hire-purchase, rent-to-buy and buy-now-pay-later models, offering credit at the point of sale allows many customers to buy products they wouldn’t otherwise be able to afford. However with the cost of credit bundled with the cost of the good or service being bought, and sometimes tied to time-limited discounts or loyalty offers, the opportunities for consumer detriment are many and varied. This paper explores store credit and vulnerable customers, and why people with mental health problems are substantially more likely both to use and to fall into difficulty with these particular credit products, and what steps could be taken to mitigate the risk.