Clearpay Logo _ Penny Lou UK Clearpay Policy

Clearpay Policy

Clearpay Finance Limited, and our company number is 05198026. Clearpay have a registered office at 22 Long Acre, Covent Garden, London, WC2E 9LY.

 These terms and conditions apply to you when:

      you ask Clearpay to finance your purchase of goods or services offered by Penny Lou (this is an “Order”); and

Cleapay provide you with a credit plan which sets out the rules of them providing you finance under each Order (this is a “Clearpay Plan”).

 It’s important to note that other terms may also apply when using our services.

These include:

 Website Terms: These terms set out how to use Clearpay's website, App and interact with any social media.

 Privacy Policy: This is an important document that sets out how Clearpay will store and use your personal information.

 Product Terms: Other terms may apply when you use other services offered by us, for example, when you use Pulse Rewards.

Together these documents form a legal agreement between you and us and Clearpay will collectively call them the “agreement” throughout this document.

Changing these terms and conditions

You can find out more information about how Clearpay change these terms and conditions in clause 28 below. Clearpay may update their terms from time to time so please check-in regularly.

If you want more information on our services or can’t find what you are looking for in the agreement, you might find it useful to read our FAQ. However, please note that these are for information purposes only and do not form part of our agreement with you.

If there is something you don’t understand in the agreement, please get in touch. If there is something you don’t agree with, unfortunately Clearpay won’t be able to provide you with a Clearpay Plan.

 Important to know!

 Using us to pay for goods or services in instalments is a form of interest free credit. It’s important that you pay us on time otherwise you may incur late payment fees. You can read more about this at clause 16 below.


 What is Clearpay?

Clearpay are a ‘buy now pay later’ company that allows you to buy goods or services offered by our retailers online or in stores including overseas retailers in countries approved by us. Our list of retailers is on our website.

 They provide services to you mainly through their website and app although they do provide our services in other ways. For example, when you make purchases in retailers’ stores, you use our virtual Clearpay Card added to a digital wallet such as Apple Pay or Google Pay. You can find out more information below on how our Clearpay Card works.

 By entering a Clearpay Plan, you instruct us to pay the retailer in exchange for you repaying to us the agreed amounts on the dates set out in your payment schedule in each Clearpay Plan. The amounts will include the cost of the goods or services, shipping costs and any taxes or amounts charged by a retailer. Each Clearpay Plan is a separate short-term fixed sum loan agreement where they lend you a fixed amount of credit to allow you to pay for your purchase over 4 instalments due every 2 weeks under the payment schedule for each Order.



 How do I open an account?

 To place Orders and enter Clearpay Plans, you must register with us for an account.

To register for an account and be eligible to use our services, you must be a UK resident, aged 18 or over, have a UK payment method (e.g., debit or credit card or any other card accepted by us), a UK billing address and a valid email address and UK mobile number. They’ll ask you for information about you to check your identity and to meet their legal and regulatory requirements. They’ll only register your account when they have approved the information. To find out how they use your personal information, please see their privacy policy.

 You can create an account by visiting our website or they can create an account for you when you place your first Order. When your account is set up, you’ll choose a payment method for the instalment payments (e.g., credit or debit or other payment card or method accepted by us such as Apple Pay).

Our services are for your personal non-business use, and you are limited to opening one account (if theyve closed your account, you’ll be prevented from creating a new one).

Keeping your account safe and secure

When your account is created, you will be asked to set up a username and secure password. You can then access your account through our website or app. You need to keep your security details, account, and our Clearpay Card safe and secure. This means you shouldn’t share your security details with anyone, and you should be careful when writing your security details down so that other people cannot see or access your security details. You should also log out of your account on your electronic device when you have finished using your account.

 Clearpay and Penny Lou are not responsible for any unauthorised use or access of your account unless they have failed to take reasonable steps to prevent such unauthorised use or access. You must contact us immediately if you notice any unauthorised access or use of your account. 

 How to use your account?

There are certain things you must do and not do when having an account with Clearpay.

For example:

act responsibly when using us to buy goods or services;

pay your instalment payments on time;

provide to us your identity documents when reasonably requested by us;

keep your contact details accurate and up to date;

help us to investigate any illegal or unapproved activity on your account;

don’t provide any false, inaccurate or misleading information;

don’t use your account for illegal purposes (such as fraud) or activities that are not approved by us or Clearpay;

don’t allow other people to use your account, the Clearpay Card in your digital wallet or access your security details;

don’t open or use more than one Clearpay account; and

don’t do anything to harm our systems or prevent them from providing their services.

What happens if something goes wrong with my account or the services?

Clearpay will try their best to make sure that our services and your account are available and accessible at a reasonable speed, however can’t promise that this will always be the case, or services will always be free from problems. If there are problems with our services or your account, they’ll work to solve any problems as soon as possible. They’re not responsible for your losses if our services or your account are unavailable or inaccessible.



 How do I place an order?

You need to choose the goods or services you want to buy from Penny Lou and follow the retailer’s instructions to arrange for your Order to be placed with Clearpay.

 When do you approve an Order?

 Clearpay may perform pre-authorisation checks on your UK payment method before they agree to finance your purchase to make sure you can afford the Clearpay Plan. They may do this for all payment methods listed in your account.

 A pre-authorisation check is where money in your bank account linked to your payment method is temporarily placed on ‘hold’ when you make an online purchase or use our Clearpay Card for store purchases. This amount will not exceed the total amount of your first instalment plus 1p owed to us under a Clearpay Plan. No money is taken from your account at this stage.

For online purchases, Clearpay will notify your bank to cancel the pre-authorisation after the pre-authorisation is processed. For store purchases, they will instruct your bank to cancel the pre-authorisation if the purchase does not happen using our Clearpay Card.

Clearpay cannot promise the time it will take your bank to cancel the pre-authorisation and release the amount. In most cases, banks will release the amount within a few hours of the pre-authorisation being cancelled by us. However, sometimes banks take up to 14 days to release money. They have no control or influence over your bank releasing any amounts under a cancelled pre-authorisation.

 If your Order is approved, a Clearpay Plan will be provided to you by email confirming your Order and your payment schedule. 

The payment schedule will set out a repayment plan of 4 instalments and the relevant due dates of each instalment which you agree to pay in full. Clearpay will finance the purchase price set out in the Clearpay Plan by paying that amount to Penny Lou for you.  

Clearpay may reject an Order or cancel an Order and a Clearpay Plan before the goods or services are supplied to you by Penny Lou if they have good reasons. Please see examples of good reasons above.

 If an approved Order and Clearpay Plan is cancelled, Clearpay will refund you all the amounts you have paid them to your payment method (or if that is not possible, any other UK card listed in your account) and cancel any future automatic payments related to that Clearpay Plan. If we also cancel a Clearpay Plan because a chargeback has been issued on the first instalment, that payment will not be refunded to you by us. Any return of money for that first instalment will be between you and your bank. In this situation, Penny Lou will not have to provide the goods or services unless required to by law.

 A chargeback is where you challenge a transaction on your account and ask your bank to reverse the transaction charge.

 How do I pay you under a Clearpay Plan?

 When your account is being set up, you can choose a payment method. You can also change your payment method or add other payment methods at any time through your account.

Each time you make an approved Order, a Clearpay Plan is issued where you agree to a payment schedule which sets out the amount you have borrowed and your repayments in instalments on specific dates. You must make all payments on time under the payment schedule. The first instalment is due when your Order is approved.  

By entering a Clearpay Plan, you authorise us to automatically deduct payments from your payment method for the instalments set out in a payment schedule for each Clearpay Plan on the due dates under a CPA. You can cancel a CPA at any time by contacting your bank but if you do cancel a CPA, you will still owe us the instalment payments under a Clearpay Plan and you will need to make the payments by a different method.

 A CPA means a continuous payment authority. It is a one-time or regular automatic payment where you give us permission to take money from your debit or credit card account to pay the instalments owed on the scheduled dates under a Clearpay Plan.

 You need to make sure that you have enough money in your bank account to make the automatic payments under the payment schedule in the Clearpay Plan. You are responsible for any fees, interest or other charges imposed by your bank in line with the terms and conditions of the agreement between you and your bank, except if they were imposed due to our error.

 If an automatic payment fails, for example, because your debit or credit card has expired, payment may be taken from another payment method listed on your account. Multiple attempts may be made on each payment method listed on your account at any time.

Can I repay a Clearpay Plan early?

 You have the right to repay a Clearpay Plan early in part or full at any time through your account on their website or app. 

 Do Clearpay charge interest?

Clearpay Plans are interest free. However, your bank may charge interest or other charges in accordance with the terms and conditions of the agreement between you and your bank.

Do Clearpay charge late fees?

 They only charge late fees if you do not pay on time. The late fees charged are:

 Orders less than £24. They may charge one late fee of £6 if you do not pay an instalment under a Clearpay Plan by the due date.

 Orders equal to or more than £24. They will charge a late fee of £6 if you do not pay an instalment under a Clearpay Plan by the due date and a second late fee of £6 if the instalment is still unpaid 7 days after the due date. The total late fees that may be applied to an Order are capped at 25% of the purchase price (before any refunds are applied) or £36, whichever is less.

 All late fees are payable by you at once. Late fees will not be applied until the date after the day that payment is due. You authorise us to deduct payment from your payment method for any late fees when they are due.

They may delay or decide not to charge late fees. If they do not enforce our rights against you for late fees, this will not stop us enforcing those rights at a later date. If you think late fees have been charged in error, please let Clearpay know. If you’re finding it difficult to pay a Clearpay Plan, please contact them directly via their website

 How Clearpay manage late payments

Clearpay will contact you as soon as we can to let you know that you have missed a payment and propose options for how payment can be made. They will work with you to agree a repayment plan for the Orders and any late fees. 

 If they are unable to collect any amounts you owe, they may use a debt collection agency to recover amounts owing under Clearpay Plans. 

 What if I cannot pay a Clearpay Plan on time or I am struggling financially?

If you are not able to pay us on time, please contact us as soon as possible so we can help you. Please click here for more information on financial difficulties.



 How do I request a refund?

If you want to return goods to Penny Lou and request a refund, you need to contact us via email immediately - and arrange the return and refund according to our terms and conditions.

You can notify Clearpay of a return to stop payments and avoid a late payment fee. You can find out more information below.

Unless either (i) you cancel the contract of sale with Penny Lou; or (ii) Clearpay are notified by Penny Lou that a return and refund is in progress; Clearpay will continue to process any automatic payments in accordance with the dates set out in your payment schedule.

Until whichever is the earlier of: (i) such time that you cancel the contract of sale with Penny Lou; or (ii) such time that the retailer has confirmed the return of the goods and has notified Clearpay of the amount of the refund for those goods; you will remain responsible to us for the full payment of your payment schedule. 

Once Penny Lou has notified Clearpay of the amount of the refund due to you for the goods returned, they will, on the same day, make the consequent adjustment to your payment schedule. If you have returned all the goods financed under the Clearpay Plan, we’ll end that payment schedule and issue a refund of any instalments you have paid to your payment method. If you have not returned all the goods financed under the Clearpay Plan, or if Penny Lou  has notified us that a partial refund is due to you, we’ll adjust your payment schedule appropriately (including to reduce or cancel any future payments, if necessary). Please note, in the event of partial refunds, refund amounts are taken off the last payment first. If the refund is processed to your expired or cancelled card, you’ll need to obtain the returned funds by contacting your bank. 

If Clearpay cannot credit any amounts to your original payment method, they will credit it to any other valid UK card listed in your account. If a refund is processed to an expired or cancelled card, you’ll need to contact your bank to obtain the returned funds. 

Where you want to return goods 120 days or more after you bought the goods, Cleapay will not be involved in the refund process, and you’ll need to contact Penny Lou directly for a refund. However, where your account has been closed for any reason, Clearpay's refund obligations to you will only continue until all amounts are paid under a Clearpay Plan or 120 days has passed since your last Order (whichever is earlier) and after that time, the retailer is responsible for processing refunds. 

Can I notify Clearpay of a return so I can stop payments and avoid a late payment fee?

 Yes! You can let them know if you have made a full or partial return so we can pause your payments by up to 2 weeks to allow Penny Lou to process your returned items. This means that you will not incur late payment fees during this period.

 You can notify Clearpay of a return by using their ‘Pause and Notify’ feature on the Clearpay App. That’s it! They'll send you an email confirming your updated payment schedule but please note that if the return isn’t completed by your next payment date and amounts remain due (e.g., you later decide not to return the item after pausing the next payment) you may have 2 payments due on the same day. You’ll also only be able to make this request once per Order. You can find out more about Clearpay's Pause and Notify feature here.

How do I cancel a Clearpay Plan?

 You have a right to cancel any Clearpay Plan at any time. You can cancel it by contacting them directly and repaying the full amount owing at once to us.



 Contacting you

 Clearpay will communicate with you in English and in electronic form by posting their communications on the secure customer area of their website and app or by email, post, and other electronic methods (e.g., SMS) using the contact details listed in your account.

Please keep your contact details accurate and up to date and let them know immediately if any information changes. You can update your contact details on their website or app or by contacting them.

Contacting Clearpay

You can contact Clearpay by:

 Website: please use the form on the contact us section of their website




 Your consumer rights

 You have consumer law rights when you buy goods or services. This includes when you are treated unfairly or when things go wrong such as faulty goods and poor services. Nothing in this agreement affects your consumer law rights.

 Changes to these terms and conditions

Each time Clearpay provide you with a Clearpay Plan, you’ll be asked to agree to the terms and conditions in force at that time (which may be different to the version you previously agreed to for earlier Orders).

 The version of the terms and conditions in force at the time you enter a particular Clearpay Plan will apply to that Clearpay Plan for the duration of the Clearpay Plan. The terms and conditions you agree to for each Clearpay Plan will be emailed to you after they approve each Order. Unless they agree with you beforehand or they are required to do so by law, rule, or regulation, they will never change those terms. The latest version of their terms and conditions will be posted on their website.

Relationship between Clearpay and retailers

 When you enter a Clearpay Plan, Penny Lou will pay Clearpay a fee for each Clearpay Plan used by you. They lend you a fixed amount of credit to allow you to purchase goods or services from us, but it is Penny Lou who is the seller of the goods or services, and your purchase will be under our terms and conditions. You should read Penny Lou's terms and conditions before you buy any goods or services.  


 If Clearpay break this agreement, they will only be responsible for your losses that they could have foreseen at the time they entered into this agreement and only up to the amount of the purchase price of each Order. Nothing in this agreement affects your consumer rights or limits or excludes our liability for death or personal injury resulting from our negligence, for fraud or fraudulent misrepresentation or any other losses which cannot be limited or excluded under law.

Rights and obligations

Only you and Clearpay have rights and obligations under this agreement.

 You cannot transfer any rights you have to anyone else. 

 Clearpay can transfer our rights and obligations to our group companies and third parties. They will let you know about this unless your Clearpay Plans will not be affected. Your legal rights will not be affected by the transfer.

 Clearpay's right to enforce the agreement

If you break this agreement and Clearpay do not enforce their rights against you, this will not stop them from enforcing those rights or other rights at a later date.

Taking legal action

 If your address is in England and Wales, the laws of England and Wales apply and any dispute about the terms and conditions will be dealt with by the courts of England and Wales.

If your address is in Scotland, the laws of Scotland apply and any dispute about the terms and conditions will be dealt with by the courts of Scotland.

 If your address is in Northern Ireland, the laws of Northern Ireland apply and any dispute about the terms and conditions will be dealt with by the courts of Northern Ireland.