Martin Lewis' MSE warns 300,000 people who have used Buy Now Pay Later

Martin Lewis' Money Saving Expert has issued a Buy Now Pay Later warning after a popular lender went bust. MSE issued a warning to subscribers who use its website, saying: "If you've got a buy now, pay later (BNPL) loan with Laybuy, you need to continue repaying it as normal – despite the firm falling into administration."

MSE said: "Failure to do so could still result in late payment fees and it could also negatively impact your credit score." It had 300,000 active users, but fell into administration on Monday 24 June 2024, with business firm FTI Consulting LLP appointed to run the process. Laybuy has since stopped giving out new loans to both existing customers and new borrowers.

MSE said: "If you make automatic repayments, these will continue to be charged to your default payment method on your payment due date. You will also still be able to log into your Laybuy account online or via the app to check and make manual repayments and update your payment details."

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Around 2,600 shops and businesses allow customers to pay with Laybuy in the UK. Laybuy had already disabled its website in mid-June, but now the news of its collapse has been confirmed, with FTI Consulting handling its administration process. Laybuy customers have been told to continue to make payments as normal if they took out credit with the firm before its collapse.

Laybuy is based in New Zealand and also has a large customer base in Australia. It has around 500,000 customers globally. Sam Ballinger, joint administrator at FTI Consulting, said: "The joint administrators are currently assessing the options available to the companies and supporting the employees, merchants and other affected stakeholders through this difficult period. Laybuy is not currently accepting new transactions, however, customers should continue to make payments as normal."