The Australian Financial Complaints Authority (AFCA) announced that, from 10 June 2025, Australian consumers using Buy Now Pay Later (BNPL) products, including Low Cost Credit contracts, can access AFCA’s free, fair and independent external dispute resolution. The change follows BNPL products coming under the National Credit Act from 10 June, requiring BNPL providers to hold an Australian Credit Licence (ACL). Because AFCA membership is mandatory for ACL holders, BNPL customers can escalate unresolved disputes to AFCA, alongside new protections such as responsible lending obligations, credit reporting, and appropriate responses to financial hardship requests. The legal changes also require BNPL providers to offer internal dispute resolution processes that are accessible to customers; AFCA noted many BNPL providers were already voluntary members and that complaints about BNPL products have been rising.
Australian Financial Complaints Authority 2025-06-10
Australian Financial Complaints Authority extends mandatory dispute resolution access to Buy Now Pay Later customers under new credit licensing rules
From 10 June 2025, Australian consumers using Buy Now Pay Later (BNPL) products can access the Australian Financial Complaints Authority's (AFCA) external dispute resolution service, following BNPL's inclusion under the National Credit Act. This mandates BNPL providers to hold an Australian Credit Licence and comply with responsible lending obligations, credit reporting, and financial hardship response requirements.