Confusion around what sort of borrower checking is required to meet obligations under the Credit Act remains widespread, say lending experts who are calling for the law to be clarified before the buy now, pay later sector is brought under those rules for the first time.

Several submissions to Treasury’s review of buy now, pay later regulation published last week, including the Australian Securities and Investments Commission’s, urged the strictest model for regulation. This would include subjecting those operators to full responsible lending checks under the National Consumer Credit Protection Act.