The recent government initiative to regulate buy now, pay later (BNPL) services like Afterpay and Zip has drawn significant attention, particularly from consumer groups who believe the proposed regulations don't go far enough. These services, which allow consumers to defer payment for purchases made online and in-store, have previously avoided inclusion under the National Credit Code because they do not charge interest. Instead, they profit from late fees and merchant charges. Despite these services' popularity, many argue they pose financial risks similar to traditional credit products. The move to classify BNPL services under credit regulations aims to offer greater consumer protection, with advocates pushing for even stricter oversight to ensure responsible lending practices.
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