$2 PARTY, page-9161

Surprise surprise. However, the regulations imposed upon BNPL providers are not the same as the ones for personal lending. Credit checking has always been the first line of defence against bad customers and providers have used a variety of methods to verify peoples' identities as well as their ability to repay. The new regulations will cause providers to conduct 'reasonable checks' (which is not credit checking) to ensure that credit products are 'not unsuitable' but the bar will be far lower than the one for full scale loans such as credit cards and personal loans, car loans and mortgages. The regulations will have no mandatory behaviour as do rules for loans, but they will give ASIC the capacity to jump on predatory lending.