Until now, these wildly popular facilities like Afterpay and Zip have slipped through the cracks of the National Credit Code. But that is soon to change.
A long-awaited crackdown on buy now, pay later services doesn’t go far enough according to a slew of submissions from consumer groups, who are pushing for tighter restrictions over how the services operate.
The draft legislation includes requiring all buy now, pay later providers to hold an Australian credit licence like any other provider of loans, from credit cards to mortgages. Though consumer and financial groups welcome many of the changes, 11 including CHOICE, Financial Counselling Australia, Indigenous Consumer Assistance Network and Consumer Action Law Centre, argue this aspect of the legislation does not provide adequate protection for users.
Last week, it sent a message to users saying that it would offer more time, on a case-by-case basis, to pay for their purchases. They will also be allowed to choose the day of the week to make those payments, to allow alignment with your pay cycle.
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