CHOICE, along with 10 other consumer organizations, has submitted feedback on proposed laws to regulate buy now, pay later (BNPL) services as a form of credit. The draft legislation aims to enhance consumer protection by requiring BNPL providers to obtain credit licenses, join the Australian Financial Complaints Authority, and adhere to caps on fees, including late fees. These measures are intended to ensure that BNPL providers conduct proper lending assessments to prevent consumers from agreeing to unmanageable repayments. Despite the advancements, the draft laws have been criticized for their complexity and several concessions favorable to the BNPL industry. CHOICE's submission includes recommendations for tightening these laws to make BNPL products safer and lending decisions more dependable.
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