Dutch Authority for the Financial Markets finds longer BNPL grace periods and extra reminders cut debt collection referrals by nearly a third

The Dutch Authority for the Financial Markets (AFM) published research with BNPL provider in3 indicating that extending the time before overdue BNPL accounts are handed over to a debt collection agency, combined with an additional reminder, helps customers avoid debt collection fees without worsening longer-term arrears. The study tested a 14-day extension and different reminder designs for 7,425 customers in payment arrears. While the share of customers still in arrears two months later was unchanged, the share transferred to a debt collection agency and charged debt collection fees (at least EUR 40) was almost one-third lower than under the regular process. Reminder content mattered: messages that explained the consequences of late payment prompted earlier repayment and reduced the likelihood of referral. The AFM noted these changes are unlikely to address customers with structural financial problems and pointed to forthcoming obligations under the recast European Consumer Credit Directive (CCD2), including information and creditworthiness assessment requirements by November 2026 and legal requirements for adequate arrears-management policies and processes. It encouraged BNPL providers and other firms involved in arrears management, including credit providers and debt collection agencies, to test customer-journey adjustments and assess their effects.