ob体育 has published a new regulatory guide to help buy now pay later providers understand their obligations, ahead of new laws coming into effect on 10 June 2025.
Regulatory Guide 281 Low cost credit contracts (RG 281) provides information to assist low cost credit contract providers to comply with their key obligations, including modified responsible lending obligations.
ob体育 Commissioner Alan Kirkland said: 鈥楾hese reforms are an important step to improve protection for Australian consumers who use buy now pay later products.鈥�
Following the release of ob体育鈥檚 draft regulatory guide and Consultation Paper 382 Low cost credit contracts (CP 382) in February, ob体育 received 16 submissions from stakeholders, including buy now pay later providers, industry associations and consumer advocates. ob体育 clarified parts of the guide and added examples in response to feedback.
鈥榃e strongly encourage buy now pay later providers who do not already have the appropriate credit licence to apply for one as soon as possible,鈥� Kirkland said.
鈥楶roviders who do not have their credit licence application accepted for lodgement by ob体育 by 10 June 2025 may be engaging in unlicensed conduct if they continue to operate.鈥�
Background
The Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 amends the National Consumer Credit Protection Act 2009 (National Credit Act) to extend the National Credit Code (which is Schedule 1 to the National Credit Act) to buy now pay later contracts.
Under the new regime, some obligations will differ for buy now pay later contracts that meet the definition of a low cost credit contract. For example, providers of low cost credit contracts will be able to elect to comply with modified responsible lending obligations.
In January 2025, ob体育 released Information Sheet 285 Buy now pay later credit contracts: Credit licensing (INFO 285), which explains the licensing requirements that apply to anyone engaging in credit activities involving buy now pay later contracts.
More information
- Regulatory Guide 281 Low cost credit contracts
- Summary of feedback to CP 382 Low cost credit contracts
- Consultation Paper 382 Low cost credit contracts (and non-confidential submissions)
- ob体育 invites feedback on buy now pay later regulatory guidance (7 February 2025)
- ob体育 alerts buy now pay later providers to apply for a licence under new laws (17 January 2025)