My pick of last week’s news is Klarna’s new app. If you don’t think it looks important, look again…
DRO regulation changes laid before Parliament gov.uk: These are negative procedure statutory instruments so, unless the order is “prayed against” in Parliament – which is highly unlikely – they will come into force on 29 June 2021.
Equifax changes credit scores on the quiet my article – Equifax has changed to scoring out of 1000, not 700 – but ClearScore will take longer to use new scores.
- Amigo Market Update RNS: the Board of Amigo continues to consider all options.
- Amigo Loans draws backlash from borrowers as it sends out 4,000 emails asking why customers voted against its ‘unfair’ cost-cutting plan Mail: “Nine in 10 of the [Amigo] complaints resolved were upheld by the Financial Ombudsman. Amigo claims, however, that the uphold rate for all complaints to the FOS is lower at around four in 10.” My comment – an odd remark from Amigo – yes the overall FOS uphold rate for all sorts of complaints is about 40%, but it is the Amigo uphold rate that matters.
Klarna launches game-changing new shopping feature, bringing interest-free shopping to ALL online retailers Klarna: Klarna users can now shop using pay in 3 at any online retailer, regardless of whether they’re partnered with Klarna or not, directly from the app
- Klarna takes on UK credit card providers with feature that breaks up online payments Computer Weekly: “Klarna is offering account-based payments and therefore bypassing the card networks”
- Klarna invades Amazon, eBay and more with new buy-now-pay-later virtual cards AltFi: Klarna’s new app means that all online retailers, many of whom would likely have never teamed up with the fintech, are powerless to stop their customers from using the BNPL service. Klarna is, quite literally, everywhere. Whether the likes of Amazon or eBay, which have their own BNPL offerings, look to block Klarna’s virtual cards in the coming weeks… we’ll have to wait and see.
- Klarna claims to be better than credit cards – but is its argument flawed? Yourmoney.com: there’s no interest on credit card purchases for 56 days on a standard card. That means if you split your payment to your card provider in three the way Klarna does, you’re saving yourself a grand total of 0.2% interest on your purchases on a standard 20% credit card APR.
- Klarna deal values lender at $45.6bn Times (paywall): Klarna, the buy now, pay later lender, has raised more capital in a deal that values it at $45.6 billion, which is bigger than Barclays or NatWest and $14 billion more than at the time of its last fundraising in March.
Increasing England student loan repayments ‘would save government £4bn a year’ Guardian: cutting the graduate repayment threshold from £26,000 to £19,000 would result in many more graduates making higher contributions over the 30 years before their loans are written off.”
Benefits & other news
Cut of £40m in help for tenants will ‘drive up homelessness’ Guardian: Renters’ groups shocked as funding in England and Wales for rent shortfalls or deposits is cut to below pre-pandemic levels
The realities of everyday life on the benefit cap and two-child limit CPAG: no amount of careful budgeting could get away from the fact that they weren’t receiving a significant proportion of their benefit entitlement because of the two-child limit and the benefit cap. For many, the only option was to take on more debt.
News round-ups are published every Sunday.
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