While there have always been various forms of instalment credit products in the marketplace, Buy Now, Pay Later (BNPL) is a uniquely Australian invention, that has now been exported around the world.
As Australian based consumer groups, we are therefore well placed to comment on the product and its impact on Australian consumers. Our casework experience, as well as research from our regulator, shows that the product can be harmful for a proportion of people that use it.
We have no doubt that US consumers will experience the same problems.
In Australia, as is the case in most parts of the United States, BNPL sits outside the laws applying to other credit products. We urge regulators to put in place adequate safeguards for BNPL products.
Read the full submission (PDF).230322 US_CFPB BNLP Final_230322 (1) (1)