New Licensing Requirements for BNPL Companies to Protect Consumers
Hey FinTech Fanatic!
In Australia, Treasury has proposed reforms to the National Consumer Credit Protection Act, requiring Buy Now, Pay Later (BNPL) services like Afterpay, Zip, and Humm to obtain a credit license and conduct thorough lending checks.
These measures aim to address issues such as unaffordable lending, poor complaint resolution, excessive late fees, and lack of transparency.
The changes, aligning with Treasury's previously suggested models, intend to integrate parts of the BNPL sector into existing consumer credit laws, ensuring lenders verify a customer's financial situation.
While some BNPL companies may need to adjust significantly, the industry broadly supports the initiative for fair regulation.
The draft laws have been released for public consultation until April 9, reflecting a move towards better consumer protection and industry standards.
More industry updates are listed for you below and I'll be back with more tomorrow!
Cheers,
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