What happens if you buy now, but can’t pay Clearpay later?

Clearpay lets you spread the cost of your purchase through 4 instalments, due every 2 weeks. The payment option is available online, through the Clearpay app, and you can also use a digital payment card for in-store purchases.

While this buy now, pay later (BNPL) option can alleviate financial stress, the consequences are expensive if you fall foul of late payments.

Around half of UK adults have used BNPL at some point, which equates to around 26.4 million people. This form of unregulated credit is popular with buyers as it is easily accessible, although it can fast-track you into personal debt.

What happens if you have a debt with Clearpay?

If you miss a payment with Clearpay, they will contact you to address the debt and discuss the support available. If you miss a payment with Clearpay, the late charges can be costly.

Clearpay charges a £6 late fee for each late instalment and a further £6 if it’s still unpaid after 7 days. Late fees are capped at £6 for orders under £24 and the lower of £24 or 25% of the order value for orders over £24.

Once a payment is missed, you will not be able to make any purchases, and your account access may also be restricted.

If you miss a payment, this could affect your future ability to use Clearpay and the debt may also be referred to a debt collection agency. Once a debt collector is involved, they will attempt to collect the debt or negotiate a repayment through different modes of communication. Your assets could be repossessed if you fail to pay.

Missed BNPL comments are typically reported to credit reference agencies which can affect your credit score, your ability to borrow money and the terms offered to you in the future.

What should you do if you are in debt to Clearpay?

If you are in debt to Clearpay, get in touch with their customer services team to explore the options available to you. If you ignore your debts, the late fees will increase and your ability to access credit will be limited.

If you are in short-term financial distress, Clearpay operates a hardship policy that provides support to those in financial distress. This gateway gives you the opportunity to negotiate a plan to resolve your debts with Clearpay.

Get expert debt advice

If your buy now, pay later debts are out of control, seek professional help immediately to get your finances on track. If you fail to acknowledge your Clearpay debts, the BNPL provider may resort to legal action which could have long-term damaging effects on your personal finances.

We offer a range of debt solutions to help tackle your debts head-on, including BNPL debts, store and credit card debts, overdraft debts and more. If you have personal debts of £5,000 or more, we can help. We offer a free personalised debt report to help you understand your debt position and the options available. Arrange a call with one of our debt advisors or visit a local Scotland Liquidations office near you.