Charity welcomes new regulations for Buy Now Pay Later services

Sinead Campbell, Head of Money, Debt and Quality at Advice NI said, “In recent years, these Buy Now, Pay Later services have become increasingly popular, but data from our consumer debt service shows that they are not without risk. We have seen a 61 per cent increase in this type of debt in just one year, with the total debt we serviced last year nearly £80k – an average debt of £470 per client.

“We welcome these changes. They will deliver stronger rights and clearer protections. It’s really important, particularly in today’s challenging economy, that we help prevent people from accumulating unaffordable debt. People have come to rely increasingly on credit since the pandemic, and as our latest research shows, the average personal debt in Northern Ireland is now £11,329 - a substantial rise from £6,578 in 2020/21.

“Many of the clients we have supported over the last 12 months haven’t fully read the terms and conditions that they accepted with Buy Now, Pay Later lenders and have suffered the negative consequences. For instance, the interest rate is usually 18 to 30 per cent. If you haven’t paid by the end of the interest free period and you miss a payment, not only is a borrower entering tricky territory to pay what they owe with interest, but their credit score could be negatively affected.

“We would encourage anyone struggling with debt to reach out to our expert advisers. We recognise that reaching out for support can be daunting, but we provide a free, confidential and impartial debt service. Our aim is to alleviate the burden as much as we can – there is no shame or judgement.”

In 2024/25, Advice NI’s debt service, which is supported by the Department for Communities, dealt with 3,481 people with debts amounting to £39.1 million. To contact Advice NI for free, confidential and impartial advice, call the Freephone helpline on 0800 915 4604 between 9am and 5pm Monday to Friday, or visit adviceni.net