The Minister of Commerce and Consumer Affairs was considering exempting Buy Now Pay Later (BNPL) providers from sections 41 and 44A of the Credit Contracts and Consumer Finance Act (CCCFA).

FinCap made a submission to the Ministry of Business, Innovation and Employment (MBIE) stating that lenders should not have any exemption from the CCCFA requirement to not charge unreasonable credit or default fees relative to the transaction.

FinCap was also "very concerned" at the targeted one-week consultation process. We requested that MBIE cease running limited consultations of public interest, with short timeframes and no opportunity for the wider community to consider and share their views.

In the submission we note that financial mentors continue to see issues with BNPL lending default fees causing or compounding substantial hardship.

Read the submission in full here.