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Post-pay crackdown coming: Two major banks fire warning shots at customers who use buy now, pay later services and want loans
- Australians using buy now pay later (BNPL) services could be denied loans
- Both Macquarie and ING began considering Afterpay and Zip services this week
- It comes after new regulatory guidelines were introduced earlier this year.
Two major banks are warning Australian borrowers that they are cracking down on using Afterpay and Zip when considering loan applications.
Both Macquarie and ING have revealed that they will consider potential borrowers’ use of ‘buy now pay later’ (BNPL) services on mortgage and personal loan applications in the New Year.
For Macquarie clients, borrowers will need to declare details such as their monthly BNPL payments and limits.
Meanwhile, ING introduced policy changes that the company says are in line with recommendations set out by regulator APRA earlier this year.
Australians who use buy now pay later (BNPL) schemes such as Afterpay and Zip could soon see banks deny loan applications after two banks introduced stricter policies this week (pictured, file image)
The Macquarie and ING policy changes went into effect on Monday, December 19, although Macquarie’s will not take effect until January 3.
After that, Afterpay or Zip accounts will be subject to scrutiny by the bank.
ING will reportedly excuse small, short-term refunds that can be returned.
“We have always taken a prudent approach to lending and believe the policy changes are designed to help clients meet their payment obligations,” an ING spokesperson told Daily Mail Australia.
The separate decisions, albeit at a similar time, stem from eight straight months of interest rate hikes by the RBA, which reduced the borrowing capacity of potential borrowers.
Meanwhile, both Afterpay and Zip have struggled in the stock market.
Afterpay saw its shares fall by more than 58 percent last year, while ZIP fell more than 88 percent during the same period.