This can't be right surely? Your takeaway on finance!

[GeoffCapes]

I've just come across an article that says you can now pay for your Deliveroo takeaway on finance! (also known as Klarna).

Does that not strike you as wrong on so many levels?

I don't even know where to start on this one!

Eat now, pay later: Takeaways can now be for on finance

Britons struggling to pay their way through the cost-of-living crisis are now being offered the option to order takeaways from Deliveroo using buy-now-pay-later scheme Klarna.

www.dailymail.co.uk

 

[Scaf]

Klarna and others like them operate in a grey area which seems to be outside the remit of the FCA, although the FCA are now looking at them all.

I agree feels wrong encouraging people to take on debt in a crisis is bad enough, but to do it for a “luxury” such as take away food is bonkers.

I think at least two food retailers have been criticised for launching similar credit schemes that fall outside of regulation.

'Buy now, pay later' firms such as Klarna to face FCA regulation

Treasury fears popularity of such services in Covid-19 pandemic could create high levels of debt

www.theguardian.com

Iceland faces backlash over buy now, pay later scheme

MPs are leading a fierce backlash against Iceland's 'buy now, pay later' scheme, warning it will encourage cash-strapped shoppers to spend beyond their means

www.dailymail.co.uk

 

[allandwf]

Take away food a luxury? To some maybe, depending what it is, but to a whole part of society it's staple. Cheap takeaway food , versus cookers with assosciated electric bill that's probably in the red or no credit in the meter . Agree credit thing is wrong

 

[mowlas]

Thanks for the heads up @GeoffCapes, had not heard about this. This is plain wrong and should be nipped in the bud, banned outright. It will just get the most desperate and vulnerable into further debt.

 

[Felonious Crud]

Thanks for the heads up @GeoffCapes, had not heard about this. This is plain wrong and should be nipped in the bud, banned outright. It will just get the most desperate and vulnerable into further debt.

Klarna is becoming an increasing common payment option for pretty much anything, alongside PayPal and the usual credit / debit card. It seems an excellent way of running up sizeable future obligations to pay for things you barely remember consuming. Not good.

 

[Oneball]

The terrible thing about this is that there are people who can’t afford food.

 

[Wack61]

Iceland need to do finance, I was in there the other day, they've got a section for cheese based products by cathedral city, one frozen cheese & ham toastie £2.75, who buys them, you could buy the ingredients for 10 sandwiches for £5

 

[philw696]

The World has gone mad where's Rees Mogg when you need him aye @Felonious Crud ?

 

[CatmanV2]

Iceland need to do finance, I was in there the other day, they've got a section for cheese based products by cathedral city, one frozen cheese & ham toastie £2.75, who buys them, you could buy the ingredients for 10 sandwiches for £5

Someone that doesn't have £5 right now....

I totally hear you, and it's not very well translated to food but Terry Pratchett had a nice explanation in the Sam Vimes theory of boots.

C

 

[Felonious Crud]

Someone that doesn't have £5 right now....

I totally hear you, and it's not very well translated to food but Terry Pratchett had a nice explanation in the Sam Vimes theory of boots.

C

You might need to elaborate on the boot thing.

I fully agree, the issue here is if people can’t afford food. Some perhaps have a takeaway dependency, which won’t be useful for budgeting (or health). Mrs Crud was telling me that Tescos does its best offers / Clubcard special pricing on the crappiest, least healthy food. Which completely sucks. Morally reprehensible, if that’s the case.

 

[CatmanV2]

You might need to elaborate on the boot thing.

I fully agree, the issue here is if people can’t afford food. Some perhaps have a takeaway dependency, which won’t be useful for budgeting (or health). Mrs Crud was telling me that Tescos does its best offers / Clubcard special pricing on the crappiest, least healthy food. Which completely sucks. Morally reprehensible, if that’s the case.

Short version: A rich man can afford to pay £300 for a pair of boots that will last for 10 years and keep their feet dry all that time. A poor man can only afford to buy a pair of boots that cost £50, last a year, and will leak after 6 months. Over 10 years the rich man spends less on boots and the poor man still has wet feet.....

We talk about it a lot (event today) that the list price of the new GT matters less than the monthly payments....

C

 

[Felonious Crud]

Short version: A rich man can afford to pay £300 for a pair of boots that will last for 10 years and keep their feet dry all that time. A poor man can only afford to buy a pair of boots that cost £50, last a year, and will leak after 6 months. Over 10 years the rich man spends less on boots and the poor man still has wet feet.....

We talk about it a lot (event today) that the list price of the new GT matters less than the monthly payments....

C

An excellent example, and one I subscribe to.

You're probably right about the monthlies. I wonder, though, if the pub boast is 'my car cost £100k!' or 'it's only £2k per month!'.

 

[Felonious Crud]

It's a sister to banggood, and the other Chinese state sponsored trading sites.
The type you only try once.
Don't
Read the GCHQ report given yesterday at the RUI.
And that's the unclassified stuff.
Don't ask.....

Klarna is Swedish, I thought, or?

 

[Ewan]

Plenty of people pay for their weekly Tesco (or wherever) shop by credit card. Which is finance. So no big difference really.

 

[Felonious Crud]

Plenty of people pay for their weekly Tesco (or wherever) shop by credit card. Which is finance. So no big difference really.

That depends on whether you pay off your credit card monthly or if you accumulate debt until you hit your credit limit and then start using another credit card.

Klarna can be used in the same way as PayPal, i.e. just as a payment gateway provider. Where this topic gets a bit thorny is where consumers use its option to spread payments over several months, i.e. you're accruing credit and not clearing it fast.

 

[Swedish Paul]

Klarna is Swedish, I thought, or?

Yes, Swedish.

 

[Swedish Paul]

Klarna and others like them operate in a grey area which seems to be outside the remit of the FCA, although the FCA are now looking at them all.

I agree feels wrong encouraging people to take on debt in a crisis is bad enough, but to do it for a “luxury” such as take away food is bonkers.

I think at least two food retailers have been criticised for launching similar credit schemes that fall outside of regulation.

'Buy now, pay later' firms such as Klarna to face FCA regulation

Treasury fears popularity of such services in Covid-19 pandemic could create high levels of debt

www.theguardian.com

Iceland faces backlash over buy now, pay later scheme

MPs are leading a fierce backlash against Iceland's 'buy now, pay later' scheme, warning it will encourage cash-strapped shoppers to spend beyond their means

www.dailymail.co.uk

Yes, because there is no interest charged. They will pass on unpaid debt to collection agencies.

 

[Zep]

I guess this is just another incarnation of the whole payday loan thing which was a grim state of affairs.

 

[Gazcw]

Short version: A rich man can afford to pay £300 for a pair of boots that will last for 10 years and keep their feet dry all that time. A poor man can only afford to buy a pair of boots that cost £50, last a year, and will leak after 6 months. Over 10 years the rich man spends less on boots and the poor man still has wet feet.....

We talk about it a lot (event today) that the list price of the new GT matters less than the monthly payments....

C

But if the poor man bought £45 boots he would have a fiver for a roll of plastic bags and gaffer tape, save £250 and have dry feet. Fool!

 

[conaero]

Sounds like the new Wonga utterly ridiculous