Bank of us welcomes ‘Buy now, pay later’ regulation to protect consumers
Bank of us supports the announcement by the Federal Government to regulate the Buy Now, Pay Later (BNPL) industry under the Credit Act. This move is a significant step towards ensuring consumer protection and promoting responsible lending practices.
The CEO of Bank of us, Paul Ranson, welcomed the government's announcement saying, "We see this regulation as a positive development for enhancing the protection of consumers, particularly vulnerable people. This regulatory change is needed to reinforce the importance of accountability and transparency within the financial sector”.
“The BNPL industry has offered consumers an alternative form of credit for online and in-store purchases. However, it has been largely self- regulated and not subject to the same laws as credit card providers.”
“We’ve been concerned about the potential risks and financial hardships faced by some consumers due to predatory and irresponsible lending practices. We hope that BNPL providers will become part of the credit reporting system to reduce the risk of over-commitment”.
“Whilst BNPL loans are often for small amounts, if consumers have multiple accounts, they can easily fall into financial difficulty. As an established financial institution, we firmly believe in providing our customers with appropriate banking solutions which support financial well-being.”
“We support responsible lending practices, including comprehensive assessments of borrowers' financial capabilities and appropriate affordability checks. This regulation should serve as a safeguard against excessive debt and will help protect vulnerable consumers from potential financial hardship”.
“As the details of the regulatory changes are worked through, we hope regulators, industry stakeholders, and consumer advocates will work together to foster a responsible and transparent BNPL market that prioritizes the best interests of consumers”.
Contact: Fiona Weller, Communications Specialist, 0421 063 784
