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本帖最后由 pinkswan 于 2018-11-16 14:23 编辑
The corporate regulator has declined to say whether 'buy now, pay later' companies like AfterPay should face increased regulation, despite strong concerns from consumer groups ahead of the report into the sector early next month.
But the Australian Securities and Investments Commission (ASIC) submission to a Senate inquiry into parts of the finance sector that have escaped the scrutiny of the Hayne royal commission, including pay day lenders, contained hinted that it shares some of the concerns expressed by critics of Afterpay and the buy now, pay later sector.
Afterpay CEO Nick Molnar
Afterpay CEO Nick MolnarCREDIT:JAMES BRICKWOOD
"ASIC currently has limited jurisdiction to address potential risks to consumers when they use buy now, pay later arrangements," it said in its submission released on Thursday evening.
ASIC said that, because companies like Afterpay are not regulated by the National Credit Act (NCA), they are not required to consider income and existing debts of potential customers when they provide a loan.
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This means that "buy now, pay later providers can offer loans to consumers when they are unlikely to be able to afford the payments," it said.
While there was plenty of harsh criticism of the pay day lenders and consumer leasing businesses that consumer groups refer to as "debt vultures", consumer group Choice was also strongly critical of Afterpay and other operators in its sector saying they should be brought under the NCA.
"The stark reality is that these schemes profit when Australians are unable to pay on time and are forced to pay late fees. It is imperative to have legal safeguards in place to prevent these schemes from preying on those who can't repay on time and unfairly profiting from this perverse incentive," Choice said in its submission.
Afterpay created a $200 million fortune for its founder Nick Molnar when it tripled in price early this year, but the shares dropped around 20 per cent to $11.35 when the inquiry was announced and have yet to recover amid a tech stock rout.
Afterpay's submission hit back at claims that it profited from these late fees which accounted for 24 per cent of its revenue last financial year.
"The income we received from late fees do not cover our losses on dishonoured payments," Afterpay said in its submission to the inquiry.
"This is the complete opposite to a credit product which makes money from interest and late payments."
Afterpay pointed out that it pays the merchant upfront and assumes all of the risk of the customer defaulting. Its late fees are capped at $68 and it freezes the customer's account if they are late on a single payment.
"In FY2018 Afterpay would have been $9.3 million or 28 per cent more profitable if there were no late fee payments or losses," it said.
Afterpay said this is why the platform was designed to encourage responsible use. ASIC, in its submission, acknowledged that Afterpay supports extending the regulator's product intervention powers to this sector.
But a submission from the Personal Insolvency Professionals Association (PIPA) identified the buy now, pay later sector as a growing problem for insolvency professionals.
"The recent proliferation of buy now, pay later credit has hastened the journey to insolvency," it said.
It said that, although the amounts are small there is a growing number of companies offering the service through retailers so the "cumulative total available to a consumer who accesses buy now, pay later credit through multiple providers can be significant."
"When debtors apply for assistance, the buy now, pay later credit is often the most recent debt, obtained at a time when the debtor was already struggling with other loans, indicating that the debtor was an insolvent borrower." |
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发表于 2018-11-16 14:23
