THE IMPORTANCE OF RESPONSIBLE RETAIL FINANCE

Wed, 15 Dec 2021

At BNP Paribas Personal Finance UK, we recognise how easy it is to sign up for unregulated retail finance products, especially when shopping online. And with the festive season in full swing, many of us will be spending big over the next few weeks on Christmas presents, Boxing Day bargains and January sales.

As a responsible retail finance provider, we’ve made it our mission to make customers aware of their options, their rights, protections available and which products might be right for their individual lifestyles and incomes.

So if you’re spending over the festive season, here are our top tips for shopping responsibly:
 

  1. Choose a regulated provider

With so many Buy Now Pater Later schemes out there, it can be all too tempting to choose this option at checkout without doing your research first.

When opting to buy now and pay later, be sure to find out exactly what this means for you and your wallet, as many providers are not regulated by the Financial Conduct Authority – meaning there’s no guarantee that the credit you’re being offered is affordable for you.

Alistair Cromwell, Acting CEO of Citizens Advice, claims that four in ten people who take out credit through unregulated services end up struggling to repay their debts. That’s why at BNP Paribas Personal Finance UK we’re committed to offering responsible retail finance solutions that give you the flexibility to spread the cost of your purchases, while still taking into account your credit history and lifestyle.
 

  1. Shop within your budget

The number one rule when buying anything on credit is to make sure the repayments are affordable for you – and it’s all too easy to fall into the trap on overspending when you’re not having to pay for your purchase upfront.

To ensure our customers don’t end up struggling to make their repayments, at BNP Paribas Personal Finance UK we only offer fully regulated finance options to our customers. That means we’re committed to responsible lending and carry out thorough checks to make sure repayments are affordable for the individual before offering credit, so that shoppers aren’t tempted to take on more debt than they should.
 

  1. Make sure you’re protected

There’s nothing worse than making a purchase and realising it’s faulty or not up to the standard it should be – and when you shop with an unregulated finance provider you could actually be signing away your rights to a refund!

Because the retail finance solutions we offer are regulated, our customers are covered by Section 75 of the Consumer Credit Act which means all goods over £100 and under £30,000 are protected in the event of faults or non-delivery – providing peace of mind when making larger purchases.

And don’t forget that if you’re unhappy with your agreement with your regulated finance provider for any reason, you can also seek support through the Financial Ombudsman Service.

To find out more about our responsible retail finance solutions and how they can help you to grow your business, click here.