31 August: Laybuy To Share Customer Debt Information With Experian
Buy Now Pay Later (BNPL) provider Laybuy will share its customers’ repayment and debt information with credit reference agency Experian from tomorrow (1 September), writes Candiece Cyrus.
The information will be available via Experian to other lenders to help them make decisions on whether they offer individuals credit. Laybuy says the information will be ring-fenced to prevent it from negatively affecting credit scores.
At the same time, it says a history of keeping to a repayment schedule could improve an individual’s score.
BNPL schemes offer consumers the option to pay for purchases in instalments over weeks or months, without paying interest, so long as they keep to the agreement terms.
Gary Rohloff, Laybuy’s managing director, said providing Experian with this data will allow other lenders to make more informed decisions when providing credit, reducing the likelihood of their offering credit to Laybuy customers when they are already struggling financially.
He said: “It will, however, give consumers who make their repayments on time the ability to build up their credit history. This will make it easier for them to access appropriate credit facilities in the future without the need to take on high-interest and higher-risk debt.
“For this reason, the sharing of data with Experian is a win-win for consumers. Not only does it provide better protection for…
