I think the product that is being offered isn’t technically a credit product, and therefore doesn’t require regulation to be offered (This doesn’t mean I think this is right btw).

This is similar to Klarna, where the buy now pay later service they offer is an invoicing product. They are playing on the technicalities of what constitutes a credit product.

Hi everyone,

Apologies for the delayed response.

I really appreciate the engagement, whether positive feedback or clarifying questions.

I built this product to provide people with a simple, fair and friendly alternative to high-interest credit products. A lot traditional credit products can be complex and have negative consequences if not used correctly.

We don’t charge any recurring interest, penalties or hidden fees. Just a one-off simple fee each time you cashout. If you don’t pay us back, hey no consequences, other than you can’t use the product until you do.

Right now we are doing a closed test with a few select customers. The website open to the public is just a landing page where you can register your email address if the product interests you (earnt-it.com)

The product is certainly not for everyone. If you can afford to pay back your credit card each month or pay your overdraft back each month then these are much cheaper alternatives. We are trying to help people that don’t have these alternatives. In time we want to release more products that help people get to a better place financially.

The reason we have put an APR on our website is because we want to try and be as transparent as possible with customers so that they can compare the cost of using our product against alternative options they might have available to them. We want people to make the right decision for them.

We are certainly open to feedback and making sure we are communicating our product correctly with customers.

Thanks, Sam.

Klarna is a regulated firm.

I am pretty sure to offer any form of consumer credit in the UK you need to be regulated - and this earnt.it offering doesn’t see to be any different to any other company offering a payday loan type service

Klarna is… some of their products aren’t. They offer a variety of products, some of them require regulation and hence the firm is a regulated one.

I have experience in this area so I am reasonably well clued up on the FCA regulations relating to lending and credit brokering. I am also familiar with CONC, the FCA credit handbook.

Short term invoicing products will surely be on the FCA agenda in the future as the market grows.

All the above is just my opinion btw, I may well be wrong about it.

Can you confirm why the product doesn’t require regulation please Sam?

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I’d like to know the answer to this too. I’ve also made contact the with FCA to understand from them why it doesn’t need be regulated.

If @hdlondon could explain it that would be awesome though

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I’ve read the stuff above and it’s all sounding a bit scammy.

I was using these for a while, Seemed very slow at times responding to emails at times. Anyone else been told they have halted there lending @TrentRockwell did the FCA get back to you?

Yeah I found this aswell it seems like after the faze of onboarding it slowed right down , I have also been told that they have been told to stop lending but I can’t really get my head around why because the reason I was given just doesn’t make sense , the support is really bad and time frames for reply’s are just as bad.

@Lynw This was the response I received last Thursday

“we are having to pause activities until things settle with the economy. We were informed last night that we cannot continue until we make changes to our product and the economy gets better.

Sorry for the inconvenience and thank you for testing our product.”

I don’t understand what they were informed about the night before as they are not regulated apart from being registered a limited company.

I got the exact same reply on Friday evening so I’m even more confused now At first I did think it was a great idea and would challenge those like Portify but Portify are still trading and have stated that people will not be allowed to increase limits at the moment but the facility is still available so I don’t understand as you say a company that isn’t registered has been given “information” that they cannot lend :thinking:

I’ve literally just this seccond revived £10 from them with the ref refund of fees I’m even more confused now :joy:

How many loans did you take I’m presuming one as I’ve just received £40.

@Lynw it’s for a refund of fees

Just one and yeah they emailed just after to say it was. I’m not complaining lol

I presume the regulator has been in touch with them telling them to stop lending as they are not registered with the FCA - hence them having to refund all fees etc

@gt94sss2 Maybe, I did get an email from them after emailing them saying

“It was an internal decision. We are a small operation (not raised money) and because of the environment and limited product it is difficult to continue sustainably right now”