Australia moves to rein in buy-now-pay-later with credit check law
SYDNEY, June 5 (Reuters) – The Australian government on Wednesday introduced legislation that would require buy-now-pay-later (BNPL) firms to run credit checks on borrowers, aiming to regulate the rapidly growing sector popular among youth like other consumer credit products.
BNPL companies typically offer on-the-spot interest-free short-term loans with minimal credit checks that spread payments over weeks or months and are largely used by cash-strapped people taking on debt, sometimes more than they can afford.
Source: REUTER
