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Buy Now, Pay Later Debt You Couldn’t Afford? Your New Rights

Updated 26 June 2026 · FairClaim Guides

Buy now, pay later (BNPL) used to sit outside much of Australia’s credit law. That changed with reforms from June 2025, which brought providers like Afterpay and Zip under the National Consumer Credit Protection regime. If a provider let you take on more than you could afford, ignored your hardship request, or listed a default unfairly, you can complain — for free — to the Australian Financial Complaints Authority (AFCA).

What the 2025 reforms require

  • Providers must check that the arrangement is affordable for you before opening an account or increasing a limit.
  • They must respond to hardship requests, like other credit providers, within the statutory timeframe.
  • Fees must be proportionate, and credit-file listings must follow the proper notice rules.

Common BNPL problems you can raise

  • You were approved, or your limit was increased, without the provider asking about your other debts or income.
  • Late and account fees have made the debt grow faster than you can repay.
  • You asked for hardship help and it was ignored or refused without reasons.
  • A default was listed without the required prior notice.

How to act

  1. Tell the provider you are in hardship and propose what you can afford — keep a copy.
  2. Gather your account history, the fees charged, and any hardship request and reply.
  3. If they ignore or refuse you, or the lending was unsuitable, lodge a free AFCA complaint.
  4. Ask for the outcome you want: a waiver or refund of fees, a hardship arrangement, or removal of a wrongful default.

How FairClaim helps

FairClaim checks your situation against the post-2025 BNPL rules — affordability, fees, hardship, and listing — and drafts a structured AFCA complaint. Free to start.

Check your rights and build your complaint — free to start

Answer guided questions or just describe what happened. FairClaim checks your facts against the relevant law and drafts your complaint.

Start your buy now, pay later complaint

Frequently asked questions

Is buy now, pay later actually regulated now?

Yes. Reforms from June 2025 brought BNPL under the National Consumer Credit Protection regime, so providers must assess affordability, handle hardship, and follow credit-listing rules — and must be AFCA members.

They gave me more than I could afford — is that a problem?

Potentially. Under the new regime providers must check that the arrangement is suitable and affordable. If you were approved or limit-increased without any real assessment of your debts and income, you can raise unsuitable lending with AFCA.

Can I ask a BNPL provider for hardship help?

Yes. Like other credit providers, BNPL providers must now respond to hardship requests within the statutory timeframe. If your request is ignored or refused without reasons, complain to AFCA.

Does complaining to AFCA cost anything?

No. AFCA is free for consumers and its decisions are binding on the provider.

Related guides

This guide is legal information, not legal advice. It describes general rights under Australian consumer credit law and may not account for the specifics of your situation. For advice about your circumstances, contact a community legal centre, the National Debt Helpline (1800 007 007), or a qualified legal practitioner.