25 June 2024 , 08:34
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Buy now, pay later firm Laybuy has collapsed into administration but customers are being urged to continue making payments.
Laybuy has around 300,000 users in the UK and it allows customers to spread payments over six weeks, without paying interest. However, the firm charges a £6 fee if your payment is late, and a further £6 if it's still unpaid seven days later. You can also end up being referred to a debt collection agency if you're more than 42 days in arrears. Laybuy also reports data to Experian so if you miss a payment, it would show on your credit report.
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."
The administration of Laybuy means you can no longer sign up for a new account, or make a new purchase with Laybuy. You will, however, still be able to log into your existing account, update your card details and make regular payments. This is important to know, as missed payments will still incur late fees, while payments more than 42 days in arrears may be referred to a debt collection agency. You won't be able to reopen a closed account.
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A notice on the Laybuy website reads: "Payment services are currently suspended across all regions. This impacts our customers ability to create new orders online and in store. During this time, all existing orders will be processed as normal. We'll share more information as soon as we can."