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    LBY   NZLBYE0001S0

LAYBUY GROUP HOLDINGS LIMITED

(LBY)
  Report
Delayed Australian Stock Exchange  -  01:25 2022-09-30 am EDT
0.0570 AUD   -3.39%
09/29Transcript : Laybuy Group Holdings Limited - Shareholder/Analyst Call
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08/19Cost-of-living crisis prompts 'buy now, pay later' warning from UK's FCA
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08/19UK cost-of-living crisis prompts warning to 'buy now, pay later' lenders
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UK cost-of-living crisis prompts warning to 'buy now, pay later' lenders

08/19/2022 | 03:33am EDT
 FCA signage seen at their head offices in London

LONDON (Reuters) - Britain's financial watchdog has told firms offering 'buy now, pay later' loans to spell out the cost of late repayments to customers as the UK cost-of-living crisis intensifies.

Companies like Klarna led the way in offering on-the-spot, interest-free, short-term loans to customers which spread repayments for buying goods like clothes over a few weeks.

Lenders make money by taking a cut from what they help retailers sell, and banks are now piling in to serve customers who would normally be unable to get a credit card or would fail strict credit checks.

BNPL loans are unregulated in Britain, but the Financial Conduct Authority has powers to intervene in how they are advertised.

The FCA told BNPL firms and the British Retail Consortium in letters published on Friday that benefits of 'buy now, pay later' were being emphasised in adverts without fair and prominent indications of any relevant risks.

Some BNPL lenders charge late payment fees, and a failure to pay can also hit consumers' credit ratings.

The watchdog said it would use criminal and regulatory enforcement powers to tackle promotions which breach its rules.

"Unauthorised firms might be committing a criminal offence if they don't have an FCA-authorised firm approve their financial promotions," the watchdog said.

So far this year, the FCA has forced 4,226 promotions to be withdrawn or amended.

Money is becoming tighter for many consumers faced with rocketing energy tariffs and 40-year high inflation pushing up food prices, making BNPL products an option in a financial squeeze.

"As we face a cost-of-living crisis, consumers are having to make difficult decisions about their finances and how they pay for goods and services," said Sheldon Mills, the FCA's executive director of consumers and competition.

Britain is to hold a public consultation on draft legislation to introduce BNPL affordability checks.

The FCA in February told BNPL operators Clearpay, Klarna, Laybuy and Openpay to change their contracts after identifying potential harm to customers. It had to use Britain's consumer rights law to do so.

(Reporting by Huw Jones; Editing by Jan Harvey)

By Huw Jones


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
LAYBUY GROUP HOLDINGS LIMITED -3.39% 0.057 Delayed Quote.-75.74%
OPENPAY GROUP LTD -7.69% 0.18 Delayed Quote.-75.17%
All news about LAYBUY GROUP HOLDINGS LIMITED
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Financials
Sales 2022 47,1 M 26,8 M 26,8 M
Net income 2022 -51,6 M -29,4 M -29,4 M
Net Debt 2022 10,5 M 5,97 M 5,97 M
P/E ratio 2022 -0,39x
Yield 2022 -
Capitalization 17,2 M 9,81 M 9,81 M
EV / Sales 2021 4,99x
EV / Sales 2022 0,69x
Nbr of Employees -
Free-Float 53,9%
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Number of Analysts 0
Last Close Price 0,06
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Managers and Directors
Gary Raymond Rohloff Managing Director & Director
Mark Conelly Chief Financial Officer
Steven Fisher Chairman
Todd Mansill Chief Technology Officer
Paul Adam Shingles Chief Operating Officer
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