At a recent meeting with Treasury, AADA was informed of the Government’s intention to commence a review and consultation on the Point-Of-Sale exemption that Dealers operate under in the provision of finance. The exemption is being considered alongside a review of Buy Now Pay Later services.
A discussion paper will be released in October and will consider three outcomes in relation to the Point-Of-Sale exemption:
- No change
- Remove the POS exemption
- Develop and implement a new arrangement which sits between full-licensing and the current POS exemption
It also appears as though there is some appetite to introduce better safeguards for BNPL and other credit products and consideration is being given to the implementation of a system requiring BNPL lenders to be authorised, undertake affordability checks on customer purchases, and comply with financial promotion rules. Borrowers will also be able to make complaints about products to the Financial Ombudsman Service.
AADA will circulate the discussion paper amongst stakeholders for review and feedback and prepare a submission based on recommendations of members and the AADA F&I Advisory Group.