FYT - WEEKLY NEWS 18TH nOVEMBER


The cost of buy-now-pay-later

More Klarna drama


Debt charities are calling on BNPL lenders to:

  • explain the risks at the point of purchase

  • make terms clear in adverts


Credit score damage




Student Erin Phillips discovered her good credit score got halved after she missed a few Klarna payments for small items



“I was quite naive, and I didn’t think these little purchases would affect me so much”

Very popular with students and young customers under 25, the risks to credit scores are not stated by Klarna or the retailer at point of sale



Stuart Carmichael, Chief Exec Debt Support Trust told FYT…

“It is imperative that all lenders clearly state the risks of borrowing money. This includes relevant risk warnings that a person's credit score could be impacted if they fail to meet their contractual obligations.
If you default on a contractual agreement, regardless of the amount, it can be detrimental to your ability to borrow money in the future"

Klarna has had issues relating to ads investigated by the Advertising Standards Authority


Klarna was cleared, but debt charities still describe some bnpl adverts as ‘misleading’






FAQs 💳💳


What happens to my credit score if I BNPL?


Nothing, if you pay within the time limit


So when does it affect my credit score?


  • If you don’t pay within 30 days and ignore reminders, it becomes a ‘bad debt’

  • A debt collector reports you to a Credit Agency

  • Your credit score goes down because you’re more risky


Why does a good credit score matter?


Mortgages, loans, credit cards, phone contracts, car insurance and loads more are….

Easier to get and cheaper



Social-media influencers' income rockets

1000% pay rise in 5 years



The average price of a sponsored photo on Instagram has jumped from:


£104

in 2014


to

£1276

in 2019



Even for micro influencers - people with less than 100,000 followers, the money is good.


Marketing firm Izea also found…


YouTube videos command the highest fees:


£323

in 2014


to


£5153

in 2019




Regulators get tough with influencers


The Consumer Rights Act makes it illegal

to post sponsored content without saying so



Last month, The Advertising Standards

Authority banned 3 influencers on Instagram

for… touting diet products.The ASA said they

were ‘irresponsible’




What are the rules on sponsored posts?


  • When influencers get 💰💰/reward for an endorsement, a post must make it obvious that...it’s an advert

  • they can use hashtags like ad or advert but not spon, or thanks to (brand) because that’s not clear





In June, homecare product influencer Mrs Hinch was investigated by the ASA



She failed to disclose on her Instagram account that a post endorsing Febreze was sponsored







Election news on minimum pay rates:

What the two main political parties are saying


Pay boost for millions of people say Institute of Fiscal Studies




will raise National Living Wage to £10.50/hour by 2024 for 21 and over


4.4 million people would be on this rate, up from 1.9m today






a Real Living Wage of £10/hour in 2020 for all workers aged 16 and over


6.5 million people would be on this rate




The Institute of Fiscal Studies warned that the rises should be

"careful and incremental”

They think a big/quick increase in wages for young workers could see them struggle to find work if employers cut back on jobs.



Rates for the 2019/20 Minimum/Living Wage are:



£8.21 /hr £7.70 /hr £6.15 /hr

aged 25 and over aged 21 - 24 aged 18 - 20


other news:

Bride gets dress-shamed for H&M bargain



A bride-to-be took to Mumsnet for opinions

on her wedding dress.


Wedding boutiques near her were too pricey

for her budget


“Everything costs an arm and a leg”

- she said


H & M wedding dresses start at £56


One was absolutely perfect for her, her dream dress. But when she told friends where it was from…


they mocked her


they questioned her judgement




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