Mob attacks on Christian churches and homes in Pakistan set off by false implication, police say

ASIM TANVEER
Mon, September 4, 2023

MULTAN, Pakistan (AP) — Last month's mob attacks on churches and homes of Christians in eastern Pakistan erupted after three Christians threw the pages of Islam's holy book outside the house of two others to falsely implicate them in a blasphemy case due to a personal dispute, police said Monday.

The three detained suspects confessed to conspiring and throwing Quran pages outside Raja Amir’s house, three police officials said. Amir and his brother had been arrested after they were accused by Muslims of desecrating the Quran.

The suspected mastermind was Pervez Kodu, who thought Amir had an affair with his wife and knew Muslims would target Amir if Kodu had thrown the pages outside his house to give the impression Amir had desecrated the holy book, three police officials said.

The officials spoke on condition of anonymity because they were not authorized to speak to media on the record. They said the three men now face charges of causing violence and falsely implicating Amir and his brother in a blasphemy case.

Khalid Mukhtar, a local priest, said he had heard about the arrests of the three men and told The Associated Press that he was trying to get details about the investigations from the police.

At least 17 churches and nearly 100 homes were damaged in the Aug. 16 mob attacks in Jaranwala, a city in Punjab province. There were no casualties but it was one of the most destructive attacks on Christians in the country.

Since then, authorities have repaired most of the churches and handed out thousands of dollars to nearly 100 families whose homes were destroyed or damaged.

Police have also arrested nearly 200 Muslims over involvement in the attacks.

Under Pakistan’s blasphemy laws, anyone found guilty of insulting Islam can be sentenced to death. While authorities have yet to carry out capital punishment for blasphemy, often mere accusations can incite mobs to violence and lynching.

Pakistani premier claims US military equipment left behind in Afghanistan is now in militant hands

MUNIR AHMED
Mon, September 4, 2023 

In this photo released by Pakistan's President Office, President Arif Alvi, right, administrates oath from Anwaar-ul-Haq Kakar as caretaker Prime Minister during a ceremony, in Islamabad, Pakistan, Monday, Aug. 14, 2023. Kakar was sworn in as the country's prime minister to head a caretaker national government that will oversee parliamentary elections amid one of the worst economic crises the Islamic nation has faced, officials said. 

(Pakistan President Office vis AP) 

ISLAMABAD (AP) — Pakistan's caretaker prime minister claimed on Monday that U.S. military equipment left behind during the American withdrawal from Afghanistan has fallen into militant hands and ultimately made its way to the Pakistani Taliban.

The equipment — which includes a wide variety of items, from night vision goggles to firearms — is now “emerging as a new challenge” for Islamabad as it has enhanced the fighting capabilities of the Pakistani Taliban, Prime Minister Anwaar-ul-Haq Kakar said.

The Pakistani Taliban, known as Tehrik-e-Taliban Pakistan or TTP, have over the past months intensified attacks on Pakistan's security forces. They are a separate militant group but an ally of the Afghan Taliban.

The Taliban overran Afghanistan in mid-August 2021 as U.S. and NATO troops were in the last weeks of their chaotic pullout from the country after 20 years of war. In the face of the Taliban sweep, the U.S.-backed and trained Afghan military crumbled.

There is no definite information on how much U.S. equipment was left behind — but the Taliban seized U.S.-supplied firepower, recovering guns, ammunition, helicopters and other modern military equipment from Afghan forces who surrendered it. Though no one knows the exact value, U.S. defense officials have confirmed it is significant.

Speaking to a select group of journalists at his office Monday in the Pakistani capital of Islamabad, Kakar did not provide any evidence to support his allegation or directly link the Afghan Taliban and the TTP. He said there was a need to adopt a “coordinated approach” to tackling the challenge of the leftover equipment.

Kakar also did not criticize the Afghan Taliban — Islamabad has tried to reach out and act as an interlocutor between the international community and the new rulers in Kabul, who have been ostracized for the harsh edicts they imposed since their takeover.

However, two security officials in Islamabad told The Associated Press that the TTP either bought the equipment from the Afghan Taliban, or was given it as an ally. The officials spoke on condition of anonymity to discuss the subject.

The Pakistani Taliban have also released statements and video clips in recent months, claiming they possess, for example, guns with laser and thermal sighting systems.

TTP fighters now target Pakistani troops from a distance, while before their only weapons were AK-47 assault rifles, one of the officials said, without elaborating.

Still, Pakistani security forces will continue to fight militants "to defend our home, children, mosques and places of worship,” Kakar said.

Kakar, 52, was sworn in last month as Pakistan's youngest prime minister to head a caretaker government. His Cabinet will run day-to-day affairs until the next parliamentary elections. The vote, which was to be held in October or November, is likely to be delayed until at least January 2024 as Pakistan's elections oversight body says it needs time to redraw constituencies to reflect the latest census results.

Kakar ruled out any talks between the government and the TTP since the militants unilaterally broke off a cease-fire last November.

Since the Taliban takeover next door, Islamabad says TTP fighters have increasingly been given shelter by the Afghan Taliban, straining relations between Islamabad and Kabul.

Pakistan became a key ally of Washington in its war against terror after the 9/11 attacks in the United States. This majority Muslim country is currently facing one of the worst economic crises even as its political turmoil deepens.

At his news conference, Kakar also stressed that all political parties — including the Pakistan Tahreek-e-Insaf opposition party of now imprisoned former Prime Minister Imran Khan — would be allowed to participate in the upcoming elections.

“We are here just to assist electoral process,” Kakar said.

He did not directly mention Khan, who is not eligible to run in the elections as he is serving a three-year prison term for corruption. Khan, who was ousted in a no-confidence vote in April 2022, remains the country’s leading opposition figure.

Protesters in southern Syria smash statue as they mark 2015 assassination of anti-government leader

Associated Press
Mon, September 4, 2023 



In this photo released by Suwayda24, a man holds an Arabic placard reading, 'Only in Syria the citizens feel safe when the security agents are absent,' during a protest in the southern city of Sweida, Syria, Monday, Sept. 4, 2023. The protests in the Druze-majority city have been ongoing for more then two weeks, initially driven by surging inflation and the war-torn country's spiraling economy but later widening to calls for the fall of the Assad government. 

(Suwayda24 via AP)

BEIRUT (AP) — Hundreds of angry protesters in southern Syria smashed the statue of Syria’s late president on Monday as they they marked the 2015 assassination of a prominent anti-government Druze leader.

The protests in the province of Sweida, where the Druze community represents the majority of the population, have entered their third week. The demonstrations were initially driven by surging inflation and the war-torn country’s spiraling economy but quickly shifted focus, with marchers calling for the fall of President Bashar Assad's government.

Monday's protest took place in the provincial capital, also called Sweida, where angry men and woman called for the downfall of Assad’s government. Some smashed the statue of Assad’s late father and predecessor, Hafez Assad.

Several demonstrators marched up to the building of the local branch of the social security and tore down a giant poster of Bashar Assad, according to videos circulated on social media and opposition activists.

Monday marked the eighth anniversary of the assassination of cleric Sheik Wahid Balous, a prominent critic of Assad. He had called on the youth in Sweida to refuse to serve in the military.

Balous, a strong supporter of rebels trying to topple Assad, died in one of two bomb explosions on Sept. 4, 2015, that also also killed 25 others. Some have blamed the government for the killing.

The Britain-based Syrian Observatory for Human Rights, an opposition war monitor, said the protesters initially went into the Swedia municipality building and removed Hafez Assad’s statue from the yard, carried it to a nearby street and smashed it there.

Some demonstrators angrily kicked chunks of the statue as it lay on the ground.

Sweida province has largely stayed out of the fighting in Syria’s 12-year civil war that has killed half a million people, wounded hundreds of thousands and left parts of the country destroyed. The conflict has displaced half the country’s prewar population of 23 million, including more than 5 million who are refugees outside the country.

A 10th century offshoot of Shiite Islam, the Druze make up about 5% of Syria’s prewar population, and are split between supporters and opponents of President Bashar Assad.

In late August, angry protesters raided the local offices of the ruling Baath party in Sweida while others blocked a highway that links the province with the capital of Damascus.

Local Chinese court argues cryptocurrency is property despite Beijing's crackdown


South China Morning Post
Mon, September 4, 2023 

A local Chinese court argued that cryptocurrency is legally protected as property in China, despite recent government policies that have sought to crack down on activities related to virtual assets.

Cryptocurrency should be treated as property and the ownership of it should be protected by law under China's current legal and policy framework, a court in the southeastern city of Xiamen wrote in an opinion article published on Friday in People's Court Daily, a newspaper run by the Supreme People's Court.

A cryptocurrency owner's property rights should be protected except when the virtual asset is used to commit crimes or was acquired through a crime, the court argued.

Beijing has intensified its crackdown on many cryptocurrency-related activities over the years. While its special administrative region of Hong Kong was recently given the nod to embrace virtual assets and open up trading for any retail investors, Beijing maintains a hostile stance towards cryptocurrencies on the mainland.

The legality of virtual assets, however, have been the subject of debate in China, and the Xiamen court's opinion piece highlights an increasing recognition among authorities in the country that the ownership of cryptocurrencies, which are deemed a type of virtual commodity, is protected.

The Xiamen court argued that cryptocurrency is property because it has "economic attributes" including usefulness and exchange value, which "exists objectively" as it circulates legally in overseas markets.

In September 2021, ten top government agencies in China escalated the country's crypto ban by declaring a broad range of cryptocurrency-related activities as illegal financial activities. But the notice focused on cryptocurrency businesses and did not determine that all cryptocurrency purchases or sales were illegal, the Xiamen court said.

In Hong Kong, a landmark ruling earlier this year also recognised cryptocurrency assets as property amid the city's push to develop the sector.

In a liquidation case in March involving now-defunct Hong Kong crypto exchange Gatecoin, Hong Kong's High Court ruled that cryptocurrencies constitute property that can be put into a trust.

The ruling, which put cryptocurrency on par with other intangible assets like stocks and bonds and brought Hong Kong in line with other common law jurisdictions, will be helpful for a range of cryptocurrency-related issues that arise in respect to property, lawyers said.

A shop advertising cryptocurrency learning in Tsim Sha Tsui, Hong Kong. 

Photo: Xiaomei Chen

Local courts in mainland China are still divided on cryptocurrency-related rulings, and holders of the digital assets have sometimes been left with little room for recourse when issues occur.

Last year, a court in Shanghai ruled that a car sale made using virtual currency was "invalid" as it violated mandatory provisions of the law and administrative regulations. In 2021, northern Shandong province's High Court also said that "investing or trading cryptocurrency isn't protected by law".

Amid ongoing regulatory oversight of cryptocurrency-related activities, local prosecutors recently slapped four executives at a Filecoin mining firm with criminal charges that include organising and leading a pyramid scheme involving more than 600 million yuan (US$83 million).

Xiao Yi, a former senior provincial official who was sacked in 2021 for supporting a cryptocurrency mining firm, was recently handed a life sentence months after he was publicly named and shamed on a national television programme known for calling out people for misdeeds.

Copyright (c) 2023. South China Morning Post Publishers Ltd. All rights reserved.

China's auto workers bear the brunt of price war as fallout widens

Reuters
Mon, September 4, 2023 


 Auto Shanghai show


SHANGHAI (Reuters) - As Shanghai sweltered in a heatwave in June, the car factory where Mike Chen works switched production to night shifts and dialled down the air-conditioning.

For Chen, toiling through the early hours in his sweat-soaked uniform, it was the latest slap in the face after cuts in bonuses and overtime slashed his monthly pay this year to little more than a third of what he earned when he was hired in 2016.

Chen, 32, who works for a joint venture between China's state-owned car giant SAIC and Germany's Volkswagen, is far from alone. Millions of auto workers and suppliers in China are feeling the heat as an electric vehicle price war forces carmakers to shave costs anywhere they can.

"SAIC-VW used to be the best employer and I felt honoured to work here," said Chen. "Now I just feel angry and sad."

The price war triggered by Tesla has sucked in more than 40 brands, shifted demand away from older models and forced some automakers to curb production of both EVs and combustion-engine cars, or shut factories altogether.

Reuters interviews with 10 executives of carmakers and auto parts suppliers, as well as seven factory workers, point to a broader industry in distress, with penny-pinching on everything from components to electricity bills to wages - which is in turn hitting spending elsewhere in the economy.

Asked about the SAIC-VW plant where Chen works, which makes combustion-engine cars, VW said pay at joint ventures varied based on working hours and bonuses. It said making cars at night eased the burden on power grids and that healthy, good working conditions were a high priority. SAIC did not respond.

Economists warn that China's auto sector could even become a drag on economic growth because of the fallout from the price war, which would be a stark turnaround for a car industry that is by far the world's biggest.

The problem is that while there has been huge investment in production capacity, helped by large state subsidies, domestic demand for cars has stagnated and household incomes remain under pressure, economists say.

In the first seven months of 2023, China sold 11.4 million cars at home and exported 2 million, but growth came almost entirely from abroad. Exports leapt 81% but domestic sales only crept 1.7% higher - despite the widespread price cuts.

"The focus on production and supply is lopsided," said George Magnus, research associate at Oxford University's China Centre, adding that inadequate attention to demand ultimately leads to inventory overhang, price cuts and financial stress.

"China really has to learn to walk on two legs."

'GOOD OLD DAYS HAVE GONE'

Chinese plants already were far from running at full tilt when Tesla first cut prices in October last year and then again in January. CEO Elon Musk has since doubled-down on his strategy with more cuts announced last month.

Including factories making combustion-engine cars, China had the capacity to produce 43 million vehicles a year at the end of 2022, but the plant utilisation rate was 54.5%, down from 66.6% in 2017, China Passenger Car Association (CPCA) data show.

At the same time, pay cuts and lay-offs in the auto industry and its suppliers - which employ an estimated 30 million people according to Chinese state media - are hitting living standards at a time when Beijing desperately wants to lift consumer confidence from near record lows.

Cutting salaries is illegal in China, but complex pay structures offer ways around this.

SAIC-VW, for example, was able to reduce Mike Chen's take-home pay by reducing working hours and cutting bonuses, without tinkering with his base pay, which typically covers up to half the compensation workers expect when they join.

BYD, China's largest EV maker, advertised a position in August at its Shenzhen factory with an estimated monthly income of 5,000-7,000 yuan, but the base salary was 2,360 yuan ($324).

The average monthly wage in China was 11,300 yuan in June, according to government data.

A Reuters analysis of the estimated income included in recent job adverts from 30 auto firms showed hourly salaries of 14 yuan ($1.93) to 31 yuan ($4.27), with Tesla, SAIC-GM, Li Auto and Xpeng at the higher end.

Auto worker Liu, 35, said he quit Changan Automobile's plant in Hefei in July after earning 4,000 yuan in both May and June, rather than the 7,000 he expected each month. Based on his past experiences, Liu was confident he would quickly find another auto job, but the market had turned.

"The good old days are gone," said Liu, speaking on condition of partial anonymity to protect his job prospects.

Changan Automobile said working hours and pay varied from worker to worker.

Several automakers including Mitsubishi Motors and Toyota have laid off thousands in China after sales slumped. Others such as Tesla and battery maker CATL have slowed hiring as they delayed expansions. Hyundai and its Chinese partner, meanwhile, are trying to sell a plant in Chongqing.

After being rejected by Li Auto and Xpeng, Liu almost got a job at Chery's plant in the eastern port of Qingdao through a labour agent, but he refused to pay him a 32,000 yuan commission to secure the position.

"Some factories exhaust you and are willing to pay you more. Some factories exhaust you, but are stingy. Some factories don't exhaust you, but starve you as salaries are too low," Liu said.

"Maybe I'd be better off as a security worker in some office building."

CUT THROUGH THE MESS

It has been a similarly brutal environment for auto suppliers in China as car prices have continued to fall, with the weighted average transaction price of EVs and hybrids in June down 15% from January at 185,100 yuan.

SAIC-VW, for example, offered over half a billion dollars in cash subsidies for car buyers in March and a discount of just over $5,100 on its ID.3 electric hatchback for a period in July.

State-run China Automotive News estimates there are over 100,000 auto suppliers in the country. In a March survey of nearly 2,000 by auto parts trading platform Gasgoo, 74% said automakers had asked them to reduce costs.

More than half were asked for reductions of 5% to 10%, higher than the 3% to 5% targets of previous years. Nine out of 10 companies expected more such requests this year.

Suppliers typically negotiate prices once a year, but many have been pressed to lower prices on a quarterly basis in 2023, two senior executives at auto suppliers said.

Before it kicked off the price war, Tesla sent emails to its direct suppliers, encouraging them to lower costs by 10% this year, according to a person with direct knowledge of the matter.

And in June, a group of small suppliers wrote to state-owned Changan Automobile to push back against 10% price reductions.

The EV battery market has also turned, with suppliers cutting prices for automakers. CATL, which counts Tesla as its biggest client, offered smaller domestic EV makers discounted batteries in February.

Lithium iron phosphate (LFP) batteries, the type used by Tesla in China, were 21% cheaper in August than five months ago, while nickel-cobalt batteries were 9% to 18% cheaper, RealLi Research data show.

When Chen Yudong, head of Bosch's China operations visited one of his biggest customers in March, he received an unusual present, a chopping knife with a message engraved on its sheath: "Cut decisively through the mess."

Three months later, he told Reuters that price cuts had been more aggressive in 2023 than in previous years.

"They've been keeping me awake at night."

($1 = 7.2951 Chinese yuan renminbi)

(Reporting by Zhang Yan, Brenda Goh and Shanghai Newsroom; Graphics by Kripa Jayaram; Editing by Marius Zaharia and David Clarke)

2,100-year-old shoe of a child worker unearthed in salt mine in Austria, photos show

Aspen Pflughoeft
Mon, September 4, 2023

Deep underground, an ancient child toiled away in a salt mine. Perhaps their job was to shovel up discarded rocks. Or perhaps they carried precious materials to the surface. Maybe they had a different job entirely.

The only clue they left behind was a 2,100-year-old shoe.

Archaeologists were excavating a tunnel of an Iron Age salt mine in Dürrnberg, Austria, when they found the child’s shoe, according to an Aug. 31 news release from the German Mining Museum.

The small shoe was incredibly well-preserved, photo show. The worn, brown material is open down the center with a series of U-shaped hooks. It almost looks like a modern-day ballet slipper.

The 2,100-year-old child’s shoe was incredibly well-preserved.

The shoe still had remnants of flax or linen laces, the release said. Based on its lace-up pattern and design, archaeologists identified the footwear as being made in the second century B.C.

Archaeologists said the shoe roughly corresponds to a modern European size 30 shoe. In U.S. sizing, this ranges from a kid’s 11 to 12 shoe size, according to conversion charts from Kiwi Sizing and SizeGuide.net. Although these modern sizes are commonly worn by 5-year-old to 6-year-old children, archaeologists did not indicate the child miner’s age.

During previous excavations in the Dürrnberg salt mine, archaeologists found several leather shoes, the release said. Still, children’s shoes are considered special finds because they prove that Iron Age children were present underground.


Archaeologists excavate a tunnel of the ancient salt mine.

Near the shoe in the Georgenberg tunnel, archaeologists found half of a wooden shovel blade and some fur with lacing. The material was likely part of a fur hood, the release said. Archaeologists did not specify if or how these artifacts were connected to the shoe.

Organic material — such as those used in the shoe and fur hood — usually decompose over time, head archaeologist Thomas Stoellner said in the release. At the Dürrnberg mine, the natural preserving effect of the salt helps save fabric artifacts that typically don’t survive in other environments.

Excavations in the Georgenberg tunnel are part of a long-term research project in Dürrnberg, the release said. Archaeologists will continue excavating the salt mine to better understand the Iron Age people who once worked there.

.Dürrnberg is about 190 miles west of Vienna and along the Austria-Germany border.

Japan's top court orders Okinawa to allow a divisive government plan to build US military runways

MARI YAMAGUCHI
Updated Mon, September 4, 2023 









A person walks along a a maritime area at Henoko in Nago, Okinawa prefecture, southern Japan Monday, Sept. 4, 2023, where the Japanese government plans to relocate a U.S. air base from one area of the prefecture to another. Japan’s Supreme Court on Monday dismissed Okinawa's rejection of a central government plan to build U.S. Marine Corps runways on the island and ordered the prefecture to approve it despite protests by locals who oppose the American troops' presence. 

(Kyodo News via AP)

TOKYO (AP) — Japan’s Supreme Court on Monday dismissed Okinawa's rejection of a central government plan to build U.S. Marine Corps runways on the island and ordered the prefecture to approve it despite protests by locals who oppose the American troops' presence.

Monday's ruling upheld a high court ruling in March that the central government's plan and its instruction for Okinawa's approval are valid. It will move forward the suspended construction at a time Okinawa's strategic role is seen increasingly important for the Japan-U.S. military alliance in the face of growing tensions with China.

Japan's central government began the reclamation work at the Henoko area on the eastern coast of Okinawa's main island in 2018 to pave the way for the relocation of the Marine Corps Futenma air station from a crowded neighborhood on the island.

The government later found out about 70% of the reclamation site is on soft ground, and submitted a revision to the original plan with additional land improvement. The Okinawa prefectural government rejected the revision as insufficient and suspended the reclamation work.

The ground improvement plan requires tens of thousands of pillars and massive amounts of soil, which opponents say would damage the environment.

Okinawa Gov. Denny Tamaki has called for a significant reduction of the U.S. military in Okinawa, the immediate closure of the Futenma base and the scrapping of the base construction in Henoko.

Tamaki said said he will not back down and continue with the demands despite the ruling. The Okinawa government will carefully examine the ruing to decide on a next step, he added.

“The ruling is extremely disappointing because we had expected a fair and neutral judgement based on respect for the local government autonomy,” Tamaki told a news conference. The ruling nullifies an independent municipal decision and could even disregard their constitutional right to local autonomy, Tamaki said. “It deeply concerns me.”

The Japanese and U.S. governments initially agreed in 1996 to close the Futenma air station, a year after the rape of a schoolgirl by three U.S. military personnel led to a massive anti-base movement. But persistent protests and lawsuits between Okinawa and Tokyo have held up the plan for nearly 30 years.

Tokyo and Washington say the relocation within Okinawa, instead of moving it elsewhere as demanded by many Okinawans, is the only solution.

Okinawa, which accounts for only 0.6% of Japanese land, is burdened with the majority of the 50,000 American troops based in the country under a bilateral security pact, and 70% of U.S. military facilities are in Okinawa.

The Japanese government in recent years has increasingly stepped up its own defenses to deal with China's growing assertiveness, triggering fear among Okinawan residents that they will be the first to be embroiled in a potential conflict.

Chief Cabinet Secretary Hirokazu Matsuno welcomed the ruling and said the government hopes to achieve the complete reversion to Japan of the Futenma airfield and relieve Okinawa of the burden of shouldering U.S. military bases while providing a thorough explanation to the local community.

TOXIC ECOCIDE
Gaza landfill fire rages for days, officials appeal for help

Nidal al-Mughrabi
Mon, September 4, 2023

Palestinian fireman extinguishes a fire at a garbage dumping site in Juhr al-Deek, southeast of Gaza

By Nidal al-Mughrabi

GAZA (Reuters) - Authorities in Gaza have appealed for help to put out a fire that has been burning for days in a waste landfill site, sending foul-smelling smoke spiralling across the blockaded enclave which already suffers from severe environmental problems.

"We are working day and night, but unfortunately fires may go on for at least till the end of the week," said municipality spokesperson Hosni Mhana.

Boosted by a severe heatwave, the fire, southeast of Gaza City, close to the separation fence with Israel, has been burning in an area of roughly 50,000 square metres (539,000 sq. ft) of a landfill site which has swollen in the absence of recycling facilities.

"We have been unable to tolerate the smell of the fires for three days, it is not normal, you can't breathe," said Salem Abeid, 64, who lives around 1 km (0.6 mile) away from the landfill.

Citing security concerns, Israel and Egypt have enforced a blockade of Gaza since the Islamist Hamas movement seized control of the densely-populated coastal enclave in 2007, restricting the movement of people and goods.

Palestinians say these restrictions have severely impeded their ability to respond to emergencies.

Mhana said the lack of ways to recycle the garbage made the problem chronic, and the landfill only got bigger and bigger over the years.

"The environmental impact is huge because while some materials degrade, some other materials such as plastic do not and they stay in the soil," he said.

(Reporting by Nidal Almughrabi; Editing by Susan Fenton)

UK
Fifth of buy now, pay later customers ‘have used the credit to fund essentials’

Vicky Shaw, PA Personal Finance Correspondent
Thu, 31 August 2023 



Nearly one in five buy now, pay later (BNPL) customers have used this payment method for essentials, according to a Government-backed body.

Research among more than 2,500 people across the UK who use BNPL was carried out in March by the Money Pensions Service (MaPS) and consultants the Behavioural Insights Team.

Among the 19% who said they had used BNPL to pay for essentials, items covered included groceries, toiletries, household bills and fuel.


BNPL can spread the costs of items without turning to other forms of credit which may incur interest charges such as an overdraft.

But there have been concerns that some people using BNPL may be overstretched when trying to pay the borrowing back, or be tempted to spend more than they intended to.

Some people may also turn to other fee-charging forms of credit to pay off their BNPL debts.

MaPS said that although BNPL can be useful, people need to consider it as carefully as any other credit product and use it in the right way.

Its new report found that over half (55%) of users had an outstanding payment, while a third (33%) had at least two. Of those with payments outstanding, more than half (55%) owed more than £100, while one in seven (14%) owed over £500.

More than two-thirds (69%) of BNPL users said they have used it even though they originally intended to pay for the item in full. Meanwhile, 44% had checked for BNPL while shopping and 38% had spent more than planned because it was available.

MaPS said those surveyed broadly reacted positively to BNPL, with 82% finding it easy to understand and 76% saying it was easy to manage and pay off.

But nearly a third (32%) had faced an issue managing their spending, with 14% of customers missing a payment and 14% being charged a late fee.

Asked what had caused the issue, prioritising other borrowing repayments and not knowing a payment was due were among the top responses. Not knowing they would be charged a late fee and borrowing too much also featured prominently, MaPS said.

Some said they had taken money from savings or used a credit card to make a repayment.

MaPS warned that when BNPL becomes long-term borrowing rather than short-term credit, the situation can quickly become difficult and may affect credit scores.

It is urging anyone struggling with BNPL to use its free MoneyHelper money tips service.

MaPS is an arm’s-length body which is sponsored by the Department for Work and Pensions (DWP) and also engages with the Treasury on financial capability and debt advice.

Jackie Spencer, head of money and pensions policy at MaPS, said: “Buy now, pay later can be a useful way to spread the cost of purchases and it often provides a real lifeline to those needing short-term borrowing for essentials.

“However, like all credit products, it’s an important decision and everyone should take time to decide whether it’s right for their circumstances.

“This research shows that many people are using it when they hadn’t intended to and spending more because it was available. It’s absolutely crucial that they make sure they can afford the repayments and don’t risk turning a short-term product into long-term debt.

“If you’re struggling with buy now, pay later, or any credit repayments, I’d urge you to seek help today via our MoneyHelper service. You don’t have to go through this alone.”

Ellie Lugt, senior adviser at the Behavioural Insights Team, said: “Buy now, pay later products are useful for many people to smooth their spending, but customers can be supported to better manage their repayments.

“Providers and retailers may be able to support customers by sending timely payment reminders and displaying simple disclosure notices, so that customers are clear on what they are signing up for.”

In July, a group of charities and consumer advocates, including Citizens Advice, wrote an open letter to Chancellor Jeremy Hunt, to say regulation of the sector “is more important than ever”.

They said that consumers turning to BNPL to pay for essentials is “compounding people’s financial hardship”.

The letter said: “We are particularly concerned that those already struggling to make ends meet are most likely to use BNPL because there are currently no safeguards in place to prevent people already grappling with debt to sign up.”

It was sent after Sky News reported that Treasury officials had been told during recent talks with the industry that some of its biggest players could quit the UK market if “heavy-handed” regulation took place.

In February, a consultation was launched to look at how firms would be brought under the scope of the Financial Conduct Authority (FCA).

The Government previously said new regulations could help protect an estimated 10 million customers.

A Treasury spokesperson said: “When used appropriately buy now, pay later can be a useful, interest-free way for consumers to manage their finances. We must ensure that regulation of these products is proportionate to ensure borrowers are protected without unduly restricting access.

“We will publish a response to our recent consultation once it is finalised.”

BNPL service Clearpay said that it has customer protections built in, such as pausing accounts if a payment is missed, to avoid accruing debt.

A spokesperson for Clearpay said: “Clearpay advises shoppers to buy only what you can afford, reschedule repayments if needed, and use email and text message reminders to make sure your payments are made on time and you have money in your account.”

Rocio Concha, Which? director of policy and advocacy, said: “BNPL remains unregulated meaning lenders do not require authorisation by the Financial Conduct Authority, and consumers have fewer protections should things go wrong.”

She added: “Ministers should introduce plans for regulation as soon as possible.”

UK

Direct Line to pay out £30m to customers overcharged on car or home insurance after rule breach


Martha McHardy
Fri, 1 September 2023 


Direct Line is set to pay out around £30 million in compensation to customers who were overcharged when they renewed their car or home insurance.

The insurer admitted to an “error” in implementing the financial watchdog’s new pricing rules which came into effect at the start of 2022.

The error meant existing insurance customers were charged more for their renewal than they would have done if they were a new customer, the Financial Conduct Authority (FCA) said.

The admission comes after The Independent revealed that almost 12,000 complaints were received by the Financial Ombudsman Service (FOS) in the past year – a four-year high – making car insurance the third most complained-about financial product, behind current accounts and credit cards.

The revelation follows this newspaper’s exposé into the great car insurance con, which found that car insurance premiums have been hiked by 48 per cent over the past year.

Car insurance is now the third-biggest household bill, behind council tax and energy, with soaring costs driving many motorists to sell up.

Direct Line was forced to act after the FCA brought in new rules last year, which prevent renewing home and motor insurance customers from being charged higher prices than a new customer would be charged.

“An error in our implementation of these rules has meant that our calculation of the equivalent new business price for some customers failed to comply with the regulation,” Direct Line admitted.

“As a result, those customers have paid a renewal price higher than they should have.”

News comes after The Independent revealed car insurance premiums have soared 48 per cent in past year

The insurance company said it has launched a review into its past policies.

Direct Line did not specify how many people were expected to be compensated but it estimated that the total payments to affected customers would be in the region of £30 million.

Not all customers who have renewed their home or car insurance since the FCA’s new pricing rules came into effect will have been overcharged, it is understood.

Direct Line said it would be contacting affected customers directly, and customers do not need to do anything themselves at this stage.

The company has ramped up prices across its motor and home insurance policies this year as the cost of claims soared.

On Wednesday, the group said it had appointed Adam Winslow from rival Aviva as its new chief executive, and he will take the reins in the first quarter of 2024.