Experts warn against resorting to buy now, pay later loans for essentials during lockdown

Experts warn against resorting to buy now, pay later loans for essentials during lockdown Experts warn against resorting to buy now, pay later loans for essentials during lockdown By David Taylor Experts warn that some Australians waiting on government support could be targeting by lenders.(ABC News: Kit Mochan)

Consumer advocates say some lenders are cashing in on those facing financial distress while under lockdown conditions.

Key points:

The Consumer Action Law Centre believes lenders are taking advantage of people still waiting on government support

Financial counsellor Peter Thompson says he has spoken to people turning to buy now, pay later lenders to pay for essentials

Afterpay says it has never enforced a debt nor sold debt to a collection agency

Financial counsellor Peter Thompson has been field…

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Beforepay, Afterpay and everything in between

Beforepay, Afterpay and everything in between: Do Australia’s BNPL players have consumers’ best interests at heart? STEPHANIE PALMER-DERRIEN Among other things, 2020 has been the year of e-commerce, and, by extension, it’s become the year of buy-now-pay-later too. Aussie market leader Afterpay has seen its share price top $100, up from $8.90 in mid-March. Competitor Zip Pay has also been going gangbusters on the ASX, and newer players like Payright and Limepay are reaping the benefits of a mass shift online. Such products essentially extend short-term credit to consumers, allowing them to take on a small debt and spread their payments into more manageable chunks. We’re also seeing other alternative credit solutions appearing. Last week, fintech BeforePay raised $4 million for its product allowing users to borrow up to $200 from their pay cheque in advance. BeforePay charges a flat 5% fee, for short-term loans, often over just seven or 14 days. SmartCompany…
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