Facebook pay later option comes with a health warning

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Claims that Facebook is to offer a ‘pay later’ option for buying virtual goods online has come with a health warning from free debt adviser Payplan.

Claims that Facebook is to offer a ‘pay later’ option for buying virtual goods online has come with a health warning from free debt adviser Payplan.
One of the UK’s leading providers of free debt advice, Payplan warns the buy now pay later service could potentially rack up unnecessary and unwanted debt among some consumers.

The provider urges Facebook to think again before introducing this feature which it claims could lead to excessive credit card debt.

Facebook is allegedly ‘quietly testing’ a pay later function for virtual goods on games such as Farmville. According to reports, this will help resolve the existing problem consumers have with buying virtual goods, providing a gentle way to ease them into the online transactional process. http://www.pcworld.com/article/211105/facebook_tri...
But Payplan MD John Fairhurst warns: “There is only vague information available about this idea at the moment but we would strongly urge Facebook and any other social media providers to think carefully about the consequences of introducing payment features of this nature.

“There is the potential of serious financial overspend for consumers, particularly if limits on spend are set high. And what happens if a child uses a parents’ credit card to buy virtual goods? How will this be policed?”

Payplan wants to see tighter controls overall on the growing online gaming market, including betting and casino sites which it says are opening up easier and more accessible routes to spending and the inevitable potential for consumers to rack up debt.

“It may seem like a game but it’s far from it,” adds Payplan MD John Fairhurst. “This is an extremely serious issue – a virtual payment feels a step removed from reality but credit card debt isn’t. It causes real misery.”

If you or someone you know has credit card debt or other financial issues caused by online spending, contact Payplan for free advice and support. The national provider can help with debt management and debt consolidation - 0800 280 2816 or visit: http://www.payplan.com or try one of the other leading impartial advisors including the Citizens Advice Bureau: http://www.citizensadvice.org.uk/getadvice.htm - to find your local CAB branch; or the National Debtline: http://www.nationaldebtline.co.uk/ - 0808 808 4000.
Note to editors
Payplan was established in 1993 and is one of the UK’s leading providers of free debt solutions. Its award-winning service helps over 100,000 people in financial difficulties every year. In November 2010 it announced a working collaboration with the Consumer Financial Education Body (CFEB), the consumer arm of the Financial Services Authority.