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Buy Now Pay Later (BNPL) products can be harmful for people who are in financial stress or experiencing social and economic disadvantage.
This is the first research exploring the impacts of Buy Now Pay Later (BNPL) on Tasmanians accessing financial counselling services, almost all of whom are in financial stress and facing social and economic disadvantage.
This research was undertaken by Anglicare’s Social Action and Research Centre and highlights two problems: inadequate regulation of BNPL and that many people facing social and economic disadvantage are struggling to make ends meet on inadequate income support payments. We also acknowledge the importance of ensuring access to safe, fair and affordable credit options for everyone.
The report’s recommendations include regulating BNPL products under the National Consumer Credit Protection Act 2009, increasing income support payments to meet basic living needs, making it easier for people on low income to access safe credit through the No Interest Loans Scheme and taking action to ensure that people are protected from financial abuse involving BNPL products.
“No one could have predicted the perfect storm that would allow BNPL to take hold as it has in Australia. It appeals to the most vulnerable in society and is often their only option for credit. … And if it’s credit, then it needs to be a regulated product”
Financial Counsellor, Anglicare Tasmania