News & Media

Buy now pay later services stinging customers with late fees

December 2, 2021

A non-profit community lender is concerned at the impact of buy now pay later (BNPL) services.

Ngā Tāngata Microfinance (NTM) say it’s getting so hard for the low-income people that they’re getting loans to pay their BNPL accounts, NTM chief executive Natalie Vincent said.

“We have repaid a number of clients BNPL debts to clear them off their schedule of debts,” Vincent said.

While she’s happy that interest-free services are servicing low-income people, she wonders if they’re creating more trouble than benefit.

“Without consumer protections in place there is very real potential for harm,” Vincent said.

She says their ‘sophisticated marketing’ can cause consumers to spend more than they can afford to repay.

Excerpt from 1News

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