Approximately 80% of shoppers now use loyalty cards, which provide member discounts, birthday freebies, and points for spending. Despite their popularity, consumers are warned to read the fine print before signing up, as some retailers link discounts to taking out loans. Frasers Group, for instance, offers up to 70% off goods and reward points if purchases are made using buy now, pay later credit. This could lead to risky financial habits, as consumer rights campaigner Martyn James warns. Buy now, pay later allows shoppers to spread costs over fixed periods without interest if repayments are timely. However, if not repaid within the interest-free period, substantial interest rates can negate any initial savings. This raises concerns about consumer debt, especially as buy now, pay later services often lack stringent credit checks. The Financial Conduct Authority and Advertising Standards Authority have guidelines to prevent misuse, but the growing trend of retailers offering credit-based discounts poses a potential risk for consumers.
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