Buy now, pay later? Check if you can afford it! – UOKiK campaign
The Office of Competition and Consumer Protection (UOKiK) is warning consumers about the financial consequences of deferred payment purchases. During the holiday shopping season and Black Week, it's worth considering whether we should really buy everything we can pay for later.
Deferred payments, known as "Buy Now Pay Later" (BNPL) and heavily advertised by e-commerce platforms, involve sellers, either independently or through payment processors, offering customers the option to pay for purchases later (usually after 30 or 45 days), also with the option of paying in installments.
One of the main deferred payment operators in Poland reported that in 2023, the number of transactions they facilitated increased by 66% year-on-year, and their value by 71%. Last year's Black Friday was a record day in this respect.
Most of us are, to one degree or another, caught up in the holiday shopping frenzy. At every turn, we're tempted by ads for "exceptional products," "perfect gift ideas," and "super deals." We're also increasingly encouraged to defer payments. Consumers, especially young ones, are eager to take advantage of this. That's why we want to draw attention to the financial consequences of this consumer trap. Be careful! Deferred payment purchases can lead to excessive debt and impact your creditworthiness , urges Tomasz Chróstny, President of the Office of Competition and Consumer Protection.
Deferred payment is effectively a loan. Failure to pay on time will incur additional costs, including interest, similar to those associated with a credit card or a bank account overdraft. However, the financial consequences can be much more serious and long-term. One of these is a reduction in creditworthiness, or in the case of payment disruptions, even loss of creditworthiness or registration with the debtor register.
" The launch of the 'Check if you can afford it!' campaign is certainly no coincidence. This is a time of major advertising and promotional campaigns, such as Black Friday and Cyber Monday, followed by the pre-holiday shopping season and post-holiday sales. Add to this the ability to shop without having to reach into your wallet, and you have a recipe for great shopping and a potential debt trap. We're running this campaign to prevent deferred payment from turning into a burden that consumers find difficult to bear. That's why I strongly encourage media, institutions, organizations, and stores to join our campaign! " adds Tomasz Chróstny, President of the Office of Competition and Consumer Protection.
It's worth remembering one more thing: The more purchases we make and the longer the deferral periods we have, the more likely we are to forget about our obligations. This may not only result in additional costs but also in a large number of obligations to repay in a short time.
You can learn more about the campaign here .