Buy now, pay later customers to be refunded after being charged unfair late fees

Some customers of buy now, pay later firms will be given refunds following a review by the financial watchdog.

Clearpay, Laybuy, and Openpay have agreed to voluntarily refund shoppers who cancelled their entire order but were still charged late fees.

The Financial Conduct Authority (FCA) called this practice inappropriate and said the loans should have been stopped immediately.