New Buy Now, Pay Later Laws Bring Enhanced Regulation to Short-Term Loan Market

The Australian government will be bringing in new legislation targeted at the burgeoning Buy Now, Pay Later (BNPL) market, which it says doesn’t operate under the same framework to which other finance lenders must adhere. Citing the need to increase consumer safeguards, new laws, essentially an amendment to the Credit Act, were announced today. In an expected move, BNPL lenders are to be licenced, following concerns raised by financial watchdogs over credit disclosure, excessive default fees and customer’s overextending their finances. Assistant Treasurer and Minister for Financial Services Stephen Jones said in March the new legislation would classify BNPL loans as credit products....