Buy Now, Pay Later (BNPL) has become a normal part of online shopping. Whether you’re spreading the cost of a new wardrobe, replacing a broken appliance or simply managing your cash flow between paydays, chances are you’ve been offered Klarna, Clearpay, Zilch or another BNPL option at checkout.
But when something goes wrong, which provider gives you the best protection?
The reality is that consumer protection isn’t just about who offers the lowest fees or the slickest app. It comes down to how disputes are handled, how refunds are processed, what happens if you miss a payment, how your credit information is used and how easy it is to get help when things go wrong.
The good news is that all major BNPL providers now offer more protections than they did a few years ago. The bad news is that complaints still happen, and some issues appear far more frequently than others.
Resolver complaint data shows that refund related issues are the most common complaint across the largest BNPL providers. Complaints about refunds not being processed or refunds being refused account for almost a quarter of all BNPL cases submitted through Resolver, making them by far the biggest source of consumer frustration.
So how do the UK’s best-known BNPL providers compare?
First, what protections should you actually look for?
Before comparing providers, it’s worth understanding what “protection” really means.
A good BNPL provider should offer:
- Clear complaint procedures.
- Fair treatment if something goes wrong.
- Reasonable support during disputes.
- Transparent credit reporting.
- Clear information about affordability checks.
- Access to independent dispute resolution where available.
- Effective handling of refunds and returns.
In other words, protection isn’t just about preventing problems. It’s about what happens after a problem occurs.
Klarna: Strong dispute tools, but refunds dominate complaints
Klarna is one of the biggest BNPL providers in the UK and offers a well developed dispute process through its app.
If you have a problem with an order, you can usually report it directly within your Klarna account and ask for payments to be paused while the issue is investigated. That can be particularly useful if goods haven’t arrived or if you’re returning an item.
However, Resolver’s complaint data suggests that refunds remain the biggest source of dissatisfaction among Klarna users. Refund related complaints account for a substantial share of Klarna cases, with refund disputes significantly outnumbering most other complaint categories.
Other recurring issues include:
- Payments not being correctly applied.
- Order disputes.
- Unfair charges.
- Fraud related complaints.
- Complaint handling concerns.
Credit checks
Klarna may carry out soft credit checks when you apply for some products. Certain borrowing products may involve harder assessments depending on the type of credit being offered.
Ombudsman access
As regulation of BNPL expands, consumers increasingly have access to formal complaint routes and greater oversight. If you remain unhappy after exhausting Klarna’s complaints process, further escalation options may be available depending on the product and circumstances.
Clearpay: Simplicity is a strength, but refund disputes still arise
Clearpay’s model is relatively straightforward. You split the purchase into instalments and make repayments over a short period.For many consumers, that simplicity is appealing.
However, Resolver complaint data suggests that Clearpay faces many of the same challenges as the wider BNPL sector. Refund disputes represent the largest complaint category, accounting for more than a quarter of reported Clearpay issues.
Other common complaints include:
- Orders not being received.
- Problems accessing accounts.
- Fraudulent activity.
- Payment issues.
- Disputes about charges.
Credit checks
Clearpay typically relies on soft searches and internal assessments when making decisions, although checks may vary depending on the circumstances.
Complaint handling
Like other major providers, Clearpay has a formal complaints process. If your issue involves a retailer return, it is often important to contact both the retailer and Clearpay so that neither side can simply refer you elsewhere.
Laybuy: Fewer complaints, but a different complaint profile
Laybuy’s complaint profile looks noticeably different from some of its competitors.
While refund issues dominate complaints at Klarna and Clearpay, many Laybuy complaints relate to transaction issues, duplicate payments, login problems and delays.
That doesn’t necessarily mean Laybuy provides better or worse protection. It simply suggests consumers encounter different types of problems.
Common complaint themes include:
- Incorrect transactions.
- Duplicate transactions.
- Account access issues.
- Payment authority disputes.
- Transaction delays.
For consumers, this highlights an important point. The biggest risk isn’t always the same from one provider to another.
Credit checks
Like most BNPL providers, Laybuy uses affordability and risk assessments before approving purchases. The nature of any search can vary depending on the product and individual circumstances.
Complaint resolution
As with other providers, documenting everything is essential. If payments have been duplicated or transactions appear incorrect, screenshots, bank statements and payment confirmations can significantly strengthen your complaint.
Zilch: More credit related complaints than its rivals
Zilch stands out because its complaint profile looks quite different from the others.
While refund and service issues still appear, Resolver data shows a higher proportion of complaints involving credit reporting, affordability concerns, account defaults and credit limit decisions.
Consumers have complained about issues including:
- Credit report disputes.
- Accounts being incorrectly defaulted.
- Problems clearing balances.
- Affordability concerns.
- Credit limits being increased or set incorrectly.
That doesn’t necessarily mean Zilch generates more credit related problems overall. However, it does suggest that consumers using Zilch may be more likely to encounter issues involving credit information than consumers using some other BNPL providers.
Credit checks
Zilch’s model has traditionally involved a closer relationship with credit reporting than some BNPL products, which makes it especially important to understand how your account activity may affect your credit profile.
Complaint handling
If you discover an error on your credit report, act quickly. Keep copies of your credit file, correspondence and account information so you can demonstrate what happened and when.
How to check your credit file
If you’re using BNPL services, it’s worth checking your credit file regularly, especially if you’ve missed a payment, disputed a balance or believe information has been reported incorrectly.
Many consumers assume BNPL activity doesn’t appear on their credit file, but that is becoming less true. Different providers take different approaches to credit reporting, and some products may share information with credit reference agencies.
Checking your credit file can help you spot:
- Missed payment markers.
- Incorrect defaults.
- Accounts you don’t recognise.
- Outstanding balances that should have been cleared.
- Incorrect personal information.
- Signs of potential fraud or identity theft.
You don’t need to wait until you’re applying for a mortgage or loan to review your credit file. Regular checks can help you identify problems early, giving you a better chance of getting them corrected before they cause wider issues.
If you spot something you believe is inaccurate, contact the BNPL provider immediately and ask for an explanation. Keep copies of your credit report, correspondence and any evidence that supports your case.
Whether you’re dealing with a delayed refund, an incorrect balance, a credit report dispute or a complaint about fees, keeping track of everything can quickly become overwhelming.
Resolver helps you raise, manage and escalate complaints in one place. This can be particularly useful for BNPL disputes, where you may be dealing with both a retailer and a provider at the same time.
Many BNPL complaints involve multiple conversations across different channels. Having a complete record of what was said, when it was said and what evidence was provided can make it much easier to demonstrate your case if you need to escalate it further.
If you’re struggling to get a clear answer, Resolver can help you keep control of the complaint process and ensure nothing gets lost along the way.
What about refund disputes?
If there is one lesson from Resolver’s complaint data, it is that refunds remain the biggest challenge across the BNPL sector. Across the largest providers, nearly one in four complaints relates to a refund that was delayed, refused or never processed. That matters because refund disputes often leave consumers caught between the retailer and the BNPL provider. The retailer says the refund has been issued. The BNPL provider says it hasn’t received confirmation. Meanwhile, repayments continue.
Whatever provider you use, the best protection is often your own record keeping.
Be sure to keep:
- Return confirmations.
- Tracking information.
- Proof of postage.
- Refund emails.
- Screenshots of conversations.
- Copies of complaint correspondence.
The stronger your evidence, the easier it becomes to challenge incorrect balances or delayed refunds.
So which provider offers the most protection?
The honest answer is that there isn’t a single winner.
Klarna offers one of the most developed dispute-management systems. Clearpay’s straightforward structure appeals to many consumers. Laybuy’s complaints profile suggests fewer refund disputes but more transaction-related issues. Zilch stands out for the number of complaints involving credit reporting and account management.
What matters most is not just which provider you choose, but how well you understand the product you are using.
Before selecting a BNPL option, ask yourself:
- How are refunds handled?
- Will the provider report information to credit reference agencies?
- What checks will be carried out?
- How can you raise a dispute?
- What happens if something goes wrong?
Those questions will tell you far more about your level of protection than any marketing message at checkout.
All major BNPL providers offer consumer protections, but none are immune from complaints. Resolver’s data shows that refund disputes remain the biggest problem across the sector, accounting for almost a quarter of complaints. Beyond refunds, each provider has its own pattern of recurring issues, from transaction disputes and account access problems to credit reporting and affordability concerns.
The best protection you can give yourself is understanding how your chosen provider works, keeping records of every transaction and acting quickly if something doesn’t look right. If a dispute does arise, don’t wait for it to resolve itself. Raise the issue, keep everything in writing and escalate your complaint if necessary. The sooner you act, the easier it is to put things right.
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This content is provided for general information purposes only and does not constitute financial, legal, or professional advice. Resolver does not provide financial advice and does not recommend any particular course of action. You should consider seeking independent professional advice if you require guidance specific to your circumstances.
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