Buy now, pay later (BNPL) reforms have been a curiously long time coming. First discussed more than 10 years ago, they came into effect last week. And the legislation is, well, interesting.

In fact, consumers will still be able to play fast and loose with their future pays. But let’s take a step back and look at the changes.

After 10 long years, buy now pay later services have finally been regulated. But the new rules aren’t as strong as they could have been.Credit: Louie Douvis

Firstly, BNPL providers – the likes of Afterpay, Zip, Humm, Klarna and more – will finally be regulated by the consumer credit code.

Previously they fell through the cracks because they don’t charge interest – the business model is instead usually to levy penalties for late payments of the typically four after-the-fact repayments of your purchases, and to charge merchants for the ability to allow customers to delay payment.

Now, when you apply for a BNPL account, you will have to answer questions about your finances. See the huge loophole in that? It’s only new customers. People with existing accounts will not need to requalify.

What’s more, though providers must from now on ask about income and debts, there’s no obligation to verify the information. And where payments are for less than $2000 – which is most of them – not much changes at all.

The proliferation of dangerous advance-pay services should be next on........

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