Regulatory Alerts2025-05-08 | RG-281RG 281 Low cost credit contracts
The Australian Securities and Investments Commission issued Regulatory Guide 281 to provide guidance for Australian credit licensees offering low cost credit contracts, such as buy now pay later services. The document outlines how the credit regime applies to these products, specifically detailing the modified responsible lending obligations under Chapter 3 of the National Consumer Credit Protection Act 2009. It serves as a compliance reference for licensees to ensure adherence to the adjusted regulatory requirements for this specific category of credit.
Issued 8 May 2025
This guide is for Australian credit licensees who provide a category of credit known as low cost credit contracts. Most buy now pay later contracts fall into this category.
It sets out ASIC’s guidance on how the credit regime applies to low cost credit contracts, including the modified responsible lending obligations in Ch 3 of the National Consumer Credit Protection Act 2009 (National Credit Act).
Download the guide (PDF 1.5 MB)