Australia Strengthens Rules For Buy Now, Pay Later Services
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The Australian Securities and Investments Commission (ASIC) has created new rules for Buy Now, Pay Later (BNPL) services. These new rules aim to protect customers and help BNPL services follow the same laws as credit services.
The new law took effect on December 10, last year. ASIC said these rules will help keep BNPL services safe for customers. The law ensures that BNPL services must follow clear and strong rules. These rules are to prevent any harm or trouble for people who use BNPL services.
ASIC Tells Providers To Apply For A Credit Licence Before Deadline
One of the new rules says that all BNPL providers must apply for a credit license by June. ASIC said all companies that don’t have a credit license yet need to send their applications before the deadline. After they apply, they can keep working while waiting for approval.
Providers who already have a credit license must check if it includes BNPL services. If not, they must ask to change it. ASIC said companies should apply early because the process could take time and face delays, like checking criminal history reports.
ASIC warned that providers who don’t apply for or get their licenses by June 10, will not be able to keep working. Companies that do not follow the rules might get penalties or other actions from regulators. To keep offering BNPL services, all providers need to follow the new rules carefully.
Experts say the new rules will help customers feel safer using BNPL services. ASIC said the new rules will increase trust among users. The commission also said the rules will ensure BNPL services remain fair and safe for every user.
The New BNPL Rules Aims To Protect Customers
ASIC said the updated rules will help protect customers. The commission noted that the guidelines will enable BNPL service providers to fix issue quick. ASIC wants the BNPL industry to be safer for everyone. The commission asked companies to follow the rules as more people get familiar with BNPL services. ASIC stated that these changes will support the industry’s safe and responsible growth.
Certain BNPL providers might find the new rules tough to manage. They will have to apply for credit licenses and submit the necessary paperwork on time. ASIC said it is crucial for companies to understand the rules to avoid penalties fully. With the deadline close, providers must act without delay.
Although the updates may seem difficult for some providers, ASIC feels these changes will improve the security of BNPL services. The commission said the new rules are there to protect users and help the BNPL market develop in a fair and safe way.
