CONSUMER CREDIT – AUSTRALIA – REGULATION

Cost of living crisis drives vulnerable Australians to buy now, pay later schemes, consumer groups say

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Original article by Jordyn Beazley
The Guardian Australia – Page: Online : 25-Jan-23

‘Buy now, pay later’ providers are continuing to attract scrutiny, amid a growing push for greater regulation of the sector. The federal government outlined three potential options in late 2022 for regulating the sector, but consumer groups contend that regulating BNPL as traditional credit products is the only one of the options that would provide sufficient protection for consumers. Shungu Patsika from the National Debt helpline says the number of people with BNPL debts has risen significantly since Christmas; he notes that in the past it was mainly welfare recipients who contact the service for help, but a growing number of people with jobs are also doing so.

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One in seven buy now, pay later customers had more than 20 loans last year, Choice survey shows

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Original article by Ben Butler
The Guardian Australia – Page: Online : 16-Sep-22

New data highlights the growing use of ‘buy now, pay later’ services in Australia and the need for greater regulation of the sector. Consumer group Choice has found that 14 per cent of consumers are using BNPL services to pay their energy bills, while one in six are using them to buy groceries. Patrick Veyret of Choice says it is shocking that Australians are being forced to use these services to pay for essentials. He notes that some people are taking out loans with up to 10 different BNPL providers. The sector will be subject to the same regulation as credit providers under reforms that have been flagged by the federal government.

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AUSTRALIAN CONSUMERS’ ASSOCIATION