Scraping by got even harder for a care worker and mum of two after she found the credit she normally relied on to get her through emergencies wasn’t there anymore.

A better solution has now been found for Kerry Payne, but she was scared for weeks about the prospect of having no cash back up and possible negative markers on her credit score before she came to Crusader.

“I’ve not missed any repayments and my circumstances haven’t changed so I don’t know what’s going on,” she explained. “It couldn’t come at a worse time as my washing machine is on its last legs but I can’t afford a new one outright now.”

++ If you’ve been affected by this issue or feel you’ve been a victim of injustice, please contact consumer champion Maisha Frost on maisha.frost@express.co.uk ++;

For the past couple of years Kerry had been using Buy Now Pay Later (BNPL) schemes as she falls outside the lending criteria of mainstream credit operators.

BNPL, offered by various retailers and financial companies, worked for her when making bigger home purchases because of the flexible options and instalment plans. These gave her both breathing space and spread the cost with the chance to pay at a later date.

More recently turned down by one BNPL provider, at first she didn’t worry and went to another, but then after getting an agreement to buy some new bedding the loan facility was suddenly withdrawn.

“It was just for £150 and the email rejecting my purchase was out of the blue,” Kerry added. “I’m so worried my identity might have been stolen or they’ve found something in my credit record. I have asked and asked, but not told why.”

It now emerges Kerry is not alone as the situation is getting tighter all round for millions of financially vulnerable borrowers, possibly as a response to new BNPL regulation coming into force next year designed to protect them. According to some estimates at least a third applications are being declined.

This will require BNPL firms to follow consistent standards — so shoppers have financial clarity about what they are agreeing to. Upfront checks will bring the system into line with other credit products ensuring people can repay what they borrow and have fairer and faster access to refunds.

Kerry risked a dreadful squeeze and even falling prey to loan sharks, but an excellent alternative has now been found with the new Shopping Card offered by charity-owned responsible lender Fair for You (www.fairforyou.co.uk/shopping-card) for all those needing to spread the cost of essential purchases. Kerry has been accepted, “my nightmare is over, thank you”, she told Crusader. [name has been changed]

Fair for You shopping card – how it can help make the numbers add up 

The Fair for You shopping card allows customers up to £350 credit with the money loaded onto a prepaid Mastercard that can be used in part and full payment online or in-store at partner retailers, top up is available once the balance is nearly paid off. Iceland Foods, Argos, Habitat, Euronics, Dunelm, Chemist Direct and Tapi Carpets and Floors, Mister Mattress are all part of the scheme.

Among the key benefits are:

Clear visibility of what you’ll pay back – rather than just stating an APR, it makes clear what exactly you owe based on your payment plan – this is particularly important given that many customers choose to repay in full within weeks or months rather than over a whole year

Total control over payments – customers can pay weekly, fortnightly, four weekly or monthly, and can reschedule repayments to get through tricky spots

No charges for repaying early or changing schedule – and Fair for You actively encourages customers to overpay, giving them breathing space and the chance to reduce the overall amount they pay back

The APR that the rules oblige Fair for You to state on its loan is 64.8%, however actual interest repayments are among the lowest in the affordable credit industry due to its model of only applying interest to the diminishing balance.

This means that a £250 loan with Fair for You, paid back through 15 weekly payments of £18.01 each, comprises a total loan amount of £270.16 (so interest paid is £20.16, or 8.1%). Alternatively, a £350 loan paid back through payments every four weeks, over a total of 32 weeks, means a total of £414.56 (actual interest being £64.56 or 18.4%).