The federal government has announced long-awaited reforms to bring buy now, pay later (BNPL) companies under the credit act, mandating responsible lending obligations and hardship requirements.
Minister for Financial Services Stephen Jones announced the changes, saying his reforms were a “balanced” approach that would protect consumers, but not harm “prudent” BNPL usage.
“We have arrived at a strong solution, and a proportionate solution,” the Minister said.
Under the government’s reforms, BNPL companies would be regulated under the national credit act, and companies would be required to hold an Australian credit licence. As well as mandating statutory hardship and dispute resolution requirements, there will also be responsible lending obligations, but these will be “scaleable” to the size of the loan.
In a joint media statement, consumer groups and financial counsellors expressed…