The State Government has welcomed a Commonwealth commitment to regulate ‘buy now pay later’ schemes.
The most commonly known buy now pay later program is Afterpay.
Under moves announced by the Federal Government today, providers would need to hold a credit licence, abide by certain advertising restrictions and adhere to minimum standards and hardship requirements.
The moves are aimed at better protecting consumers and follows an extensive consultation program undertaken by the Commonwealth.
Strengthening protections for consumers, through the introduction of new obligations for providers of these credit products, is something the Minister has been calling for since becoming Consumer Affairs Minister.
The Minister raised the issue as a priority as Chair of the Consumer Affairs Ministers meeting in September last year with her Federal and State counterparts and it is fantastic that the Commonwealth is acting on this important issue.
Minister for Small Business Andrea Michaels says “For many South Australians who are struggling, buy now pay later schemes can be an attractive option for managing large purchases.”
“However, they also come with risks, which is why we support moves to regulate the sector and better protect consumers from bad lending practices.”
“Strengthening protections for consumers, through the introduction of new obligations for providers of these credit products, is something I have been calling for since becoming Consumer Affairs Minister last year and I welcome the raft of measures announced today.”
“The measures announced by the Albanese Government are important reforms that will better ensure consumers understand what they are signing up for when they take out a buy now pay later loan and strengthen responsible lending practices on behalf of providers.”
