300,000 UK Customers Hit as Laybuy Collapses into Administration, Leaving Thousands in Financial Limbo!

Laybuy’s Administration Leaves 300,000 UK Customers in Uncertainty

Existing Payments Must Continue Despite Laybuy’s Service Suspension

According to MIRROR, the buy now pay later (BNPL) firm Laybuy has collapsed into administration leaving around 300,000 customers in the UK in a difficult situation. Laybuy offered a service where users could spread payments over six weeks without interest. However the company’s financial troubles became apparent when it disabled its website in mid-June, and the situation worsened as it entered administration. FTI Consulting is now handling Laybuy’s administration process and has urged customers to continue making payments on their existing credit agreements. Laybuy’s policies included reporting late payments to the credit agency Experian and charging late fees making it crucial for customers to keep up with their payments to avoid additional penalties or being referred to debt collection agencies.

The collapse of Laybuy has significant implications for around 2,600 UK shops and businesses that accepted payments through its platform. Based in New Zealand Laybuy also served many customers in Australia bringing its total global customer base to approximately 500,000. Sam Ballinger the joint administrator from FTI Consulting stressed that while Laybuy is not accepting new transactions or customers existing users need to continue their regular payments. Customers can still access their accounts to update card details and manage their repayments which is essential to avoid late fees and potential negative impacts on their credit scores. The administration process is focusing on supporting employees merchants and stakeholders through this challenging period.

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300,000 UK Customers Hit as Laybuy Collapses into Administration, Leaving Thousands in Financial Limbo! (PHOTO: Shosha)

Laybuy Halts New Transactions But Urges Customers to Maintain Payments

A notice on the Laybuy website confirmed that payment services are suspended across all regions, stopping new orders both online and in stores. Nevertheless, existing orders will be processed as usual. This development means that no new accounts can be created, and no new purchases can be made using Laybuy. Despite these restrictions, it is vital for users to maintain their regular payments on any outstanding credit agreements to prevent incurring late fees or other complications. As the administration process continues, more information will be provided to affected customers, businesses, and stakeholders to help them navigate the aftermath of Laybuy’s collapse.

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