UPDATE 29 NOVEMBER 2024: Thanks to your support, crucial buy now, pay later reforms have passed in Australia. Buy now, pay later loans will be regulated similar to other credit products, affording consumers greater protections, like lending checks and better complaints handling.
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CHOICE, in alliance with 11 other consumer organisations across the world, is calling on governments to ensure that the law protects consumers from the growing risks of Buy Now Pay Later loans.
Read the joint statement below and add your name:
As concerned consumers and organisations that represent the interests of consumers across Australia, the USA, EU and UK, we call on governments and regulators to protect consumers from risky Buy Now Pay Later loans, especially those most at risk of financial hardship.
Today, Buy Now Pay Later loans are becoming more popular than ever, leading millions of consumers around the world into unaffordable debt. Buy Now Pay Later companies exploit loopholes in consumer protection laws, posing serious financial risks to consumers. This means they don’t have to conduct even basic checks to ensure consumers can afford to repay the debts.
Buy Now Pay Later companies are increasingly marketing their loans to pay for essential services like electricity and groceries and large expenses like household improvements, targeting those who are most at risk of financial hardship. Late fees charged to customers can also quickly add up to cost far more than other forms of credit.
We’re calling on governments and regulators to strengthen consumer protections against growing risks of Buy Now Pay Later loans, including the following measures:
This joint statement is signed by:
With your support we can pressure governments and regulators across the world to ensure that consumers continue to be protected, without being exposed to additional risks when new products and services are introduced.
The alliance of consumer rights organisations is already creating pressure on governments around the world. However, if thousands of Australian consumers like you will also add your name in support, it’ll be so much stronger. Add your name now.