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BNPL responsible lending bill introduced

Financial Services Minister, Stephen Jones, yesterday introduced legislation into parliament that will see buy now pay later providers brought under the Credit Act.

After a period of angst, the BNPL sector is behind the bill.

Diane Tate, CEO of the Australian Finance Industry Association said “the new laws provide a solid regulatory foundation for the BNPL sector and strike a balance between protecting consumers without reducing competition, innovation and choice.”

Caps on late fees and limits to annual charges are still in consultation.

AFIA’s latest data shows that in FY2023 “the BNPL sector contributed more than $22.9 billion to Australia’s GDP” a 24 per cent increase on 2022.

AFIA said it will now work to update its BNPL Code of Practice to align with the new laws and to adopt recommendations made in a review last year by Promontory of the code.

 

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