Save
Popular ‘buy now, pay later’ lenders set for inquiry
Short-term credit and “buy now, pay later” providers are headed for a government review to evaluate if there’s a case for reform.

Popular ‘buy now, pay later’ lenders set for inquiry
Short-term credit and “buy now, pay later” providers are headed for a government review to evaluate if there’s a case for reform.

Last week, the opposition Deputy Whip and NSW senator Jenny McAllister moved to bring several providers in the finance industry before the economics references committee as part of an inquiry.
Ms McAllister called for an inquiry and report by 22 February 2019 into “credit and financial services targeted at Australians at risk of financial hardship”.
Specifically, the Senate has been asked to look at the impact on individuals, communities and the broader financial system from the operations of:
- payday lenders and consumer lease providers;
- unlicensed financial service providers including “buy now, pay later” providers and short-term credit providers; and
- debt management firms, debt negotiators, credit repair agencies and personal budgeting services.
Further, the inquiry expects to cover “whether current regulation of these service providers meets community standards and expectations and whether reform is needed to address harm being caused to consumers”.
Ms McAllister called for the inquiry to also review the present capacity and capability of the financial counselling sector to provide financial counselling services to “financially stressed and distressed members of the community”, as well as any other matters that may arise from the inquiry.
Several of the companies that will likely be brought into the inquiry, such as Afterpay Touch Group, saw their share price fall markedly on the day of the announcement, followed by a recovery.
Short-term lenders and your mortgage
A prospective borrower's use of short-term lenders and “buy now, pay later” providers is now factored into a lender's risk assessment.
“Some banks now require transaction statements, which means borrowers can’t hide with their history of spending. The rise in ‘tap and go’ payments plus technology such as bankstatements.com.au can classify spending into categories and give a lender full visibility on applicant’s spending patterns and how much they save – this level of disclosure is unprecedented,” Aaron Christie-David, managing director at Atelier Wealth, told Nest Egg last month.
“Examples include Afterpay, frequent holidays, high spending on credit cards and even spending on gambling, alcohol and dining are being hauled into question if they are ongoing expenses after their loan has settled or if this constitutes discretionary spending."

Savings account
COVID-19 sees Aussies reach record-high wealth
New stats have revealed that Aussies are now richer than ever, having stashed away their cash during a year marred by the COVID-19 pandemic and the resulting economic shutdown. ...Read more

Savings account
Saving more during the pandemic? Here’s where that money should go
If you’re finding that you’re saving more during the pandemic, you’re not alone. ...Read more

Savings account
Aussie savings goals put on hold due to COVID-19 pandemic
The COVID-19 pandemic has seen Australians being forced to dip into their life savings, which is impacting their ability to achieve financial goals, new research has found. ...Read more

Savings account
The 4 types of COVID-19 consumers: Which one are you?
Australians are still living in fear of worsening economic conditions, with a study revealing changed spending behaviours across the board despite varying levels of individual financial impact. ...Read more

Savings account
Are you a victim of financial abuse? 22 questions to consider
An “invisible” form of abuse, family violence that uses money as a method of control and coercion, is a real issue in Australia. ...Read more

Savings account
Another $750 payment on way for pensioners
From today, the second cash payment that has formed part of the Australian government’s economic response to the coronavirus will be made available. ...Read more

Savings account
Big 4 bank busts out 3 per cent savings interest rate
But not everyone is eligible for the new rate, which is far beyond anything else on offer from an Australian bank. Are you? ...Read more

Savings account
Bank balances reveal Aussies are prepping for life post-COVID
Australians are bunkering down for life post-COVID-19, with new analysis revealing median bank balances are up 45 per cent from the pre-pandemic period. ...Read more

Savings account
COVID-19 sees Aussies reach record-high wealth
New stats have revealed that Aussies are now richer than ever, having stashed away their cash during a year marred by the COVID-19 pandemic and the resulting economic shutdown. ...Read more

Savings account
Saving more during the pandemic? Here’s where that money should go
If you’re finding that you’re saving more during the pandemic, you’re not alone. ...Read more

Savings account
Aussie savings goals put on hold due to COVID-19 pandemic
The COVID-19 pandemic has seen Australians being forced to dip into their life savings, which is impacting their ability to achieve financial goals, new research has found. ...Read more

Savings account
The 4 types of COVID-19 consumers: Which one are you?
Australians are still living in fear of worsening economic conditions, with a study revealing changed spending behaviours across the board despite varying levels of individual financial impact. ...Read more

Savings account
Are you a victim of financial abuse? 22 questions to consider
An “invisible” form of abuse, family violence that uses money as a method of control and coercion, is a real issue in Australia. ...Read more

Savings account
Another $750 payment on way for pensioners
From today, the second cash payment that has formed part of the Australian government’s economic response to the coronavirus will be made available. ...Read more

Savings account
Big 4 bank busts out 3 per cent savings interest rate
But not everyone is eligible for the new rate, which is far beyond anything else on offer from an Australian bank. Are you? ...Read more

Savings account
Bank balances reveal Aussies are prepping for life post-COVID
Australians are bunkering down for life post-COVID-19, with new analysis revealing median bank balances are up 45 per cent from the pre-pandemic period. ...Read more