Last updated 9 January 2019
Buy now, pay later schemes are a new form of lay-by, but with an important difference. Unlike lay-by, these schemes allow customers to take their goods home or use services before they have paid for them, paying for the goods or services with fortnightly instalments. The consumer pays the scheme rather than the retailer. There are no specific protections for consumers beyond the general ACL provisions. Issues arise if consumers pay late, seek a refund or have overcommitted themselves. These arrangements are not regulated by consumer lending laws as they do not charge interest, only fees if payments are late.