Thursday, October 28

Monzo becomes first major bank to launch buy now pay later scheme – here’s how it stacks up


You won’t be charged fees for missed repayments-but these will be reported on your credit file

If you miss a repayment you’ve agreed to you won’t be charged interest or late payment fees (although interest of 19% does apply if you take longer than three instalments to repay). Monzo will, however, report missed repayments to CRAs . Monzo says it will always remind customers the day before a Flex payment is due.

For those who miss a repayment, you’ll be given seven days to repay. Monzo will also freeze the use of Flex in the meantime so you cannot get into further debt. If, after seven days, you’ve not repaid the instalment you ‘ll be moved onto a plan to make minimum repayments. If you then still fail to make minimum repayments Monzo will work with you to create a different repayment plan-but Monzo will report this to CRAs.

If your debt is passed on to a CRA, your credit score is likely to be affected, which may harm your ability to take out more credit in future. For more information on this, see our Credit Scores guide.





www.moneysavingexpert.com