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Buy now, pay later lender Laybuy falls into administration – what it means for you

If you've got a buy now, pay later (BNPL) loan with Laybuy, you need to continue repaying it as normal – despite the firm falling into administration. Failure to do so could still result in late payment fees and it could also negatively impact your credit score. 

Laybuy was a BNPL lender that allowed people to purchase items both online and in store and spread the cost over a six-week period without paying interest – though if you missed a payment you faced late fees and marks on your credit file.

It had 300,000 active users, but fell into administration on Monday 24 June 2024, with business firm FTI Consulting LLP appointed to run the process. Laybuy has since stopped giving out new loans to both existing customers and new borrowers.  

While BNPL can be a cheap way to borrow, it's still a debt. It is also an unregulated sector and while regulation might be introduced in the future – something has long-campaigned for – for now, it still lacks vital consumer safeguards. 

If you've got an outstanding Laybuy loan, you should continue with repayments

While Laybuy has stopped new lending, existing borrowers should continue to make repayments. Here are the key need-to-knows:

  • If you have an outstanding balance, you should continue making repayments as normal. If you make automatic repayments, these will continue to be charged to your default payment method on your payment due date. You will also still be able to log into your Laybuy account online or via the app to check and make manual repayments and update your payment details. 
  • If you miss a repayment, you will still be charged late fees. Laybuy charges a missed payment fee of £6, which can be charged up to four times per purchase. Any payments that are 42 days or more in arrears may still be referred to a debt collection agency. 

  • If you miss a repayment, this can still be passed onto a credit reference agency. Like most BNPL lenders, Laybuy also reports any missed payment data to a credit reference agency, in this case Experian, which can negatively impact your credit score and harm your chances of getting future credit. 

Got a complaint? You've a few options

If you've got a complaint about an item or service you've bought using Laybuy, you should lodge this with the retailer you bought it from. Using BNPL means you lose Section 75 consumer protection, which covers credit card purchases over £100 for free if there's a problem, such as faulty or non-delivered goods. You can, however, continue to try the chargeback process or open a dispute with PayPal if you paid using that.

If you've got a problem or complaint with Laybuy directly, you can still contact Laybuy's customer services team for now, via email only, at

FTI Consulting says it's currently "assessing the situation" for those who believe they're owed a refund from Laybuy – for example, because they've returned unwanted items to a retailer for a refund, or they've been wrongly charged late payment fees.

Where a dispute about a BNPL provider remains unresolved, it's unlikely this can be escalated to the Financial Ombudsman Service, as BNPL is an unregulated sector.

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