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ARTICLE · 09 JUNE 2025

BNPL – Low Cost Credit Contract Providers

Sophie Grace Pty Ltd
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ASIC has released its guidance for providers of low cost credit contracts, who will be subject to modified responsible lending obligations.

AustraliaFinance and Banking
Alicia Pevely
Alicia Pevely
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ASIC has released its guidance for providers of low cost credit contracts, who will be subject to modified responsible lending obligations.

Fron 10 June 2025, Buy Now Pay Later ("BNPL") providers will be subject to the credit licensing regime, and will therefore be required to:

  • Be authorised by a credit licence to provide BNPL contracts; and
  • Comply with the obligations under the legislation, including the responsible lending obligations.

Low Cost Credit Contracts ("LCCC")

A LCCC is a BNPL contract where the total amount of fees and charges that may be payable do not exceed:

Fees or charges (other than default fees) For the first Fee Period: $200
Otherwise: $125

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