Money Saving Expert Martin Lewis has voiced fury at Sir Keir Starmer, after he spotted that a prominent Labour conference fringe event is sponsored by a buy now pay later firm.
According to Mr Lewis, the London regional party last night was not only sponsored by the controversial loan company but its founder was given a platform to speak against regulation.
The move comes in stark contrast to a Times story from September 25, in which it was reported Labour is set to make regulating such “buy now, pay later” credit a pledge in its next manifesto.
Labour’s policy document says the party will “bring forward long overdue consumer protection regulation in areas like buy now pay later”.
Now Martin Lewis is demanding to know whether the event sponsor has “bought influence” within the Labour Party.
He also demanded to know whether Sir Keir is “now anti-regulation”.
Photos from last night’s party show Sir Keir and Sadiq Khan posing next to an advert for Zilch.
According to personal finance expert Salman Haqqi from money.co.uk, “While these schemes, like Zilch, Klarna and Clearpay, are quick and easy to join and seemingly harmless, they are in fact an entry point to debt for many.
“Their quick and easy sign-up process, minimal credit check, and youthful marketing appeal could be causing shoppers to sign up and spend more than they can afford without understanding the full risk.”
Mr Lewis has previously spoken out about his concern over the growth of Buy Now Pay Later, saying the service is “exploding like payday loans did”.
He said: “Andy like payday loans were, it’s a huge credit industry that’s unregulated – so few rules”.
He’s demanded changes, saying the financial services bill must be amended to regulate such providers.
Journalist Michael Crick responded to Mr Lewis’s observation, saying corporate sponsorship is the “big story of Labour conference: the sell-out to dubious businesses. The lobbyists; fringe meeting sponsors paying to make speeches; cash for access – and sod the unions”.
Former Corbyn advisor Andrew Fisher demanded that Shadow Business Secretary Jonathan Reynolds clear up whether it is still Labour policy to regulate the industry.
Green Party peer Jenny Jones accused Labour of being “bought and paid for”.
