SINGAPORE — A code of conduct that aims to protect consumers against over-indebtedness when using"buy now, pay later" schemes will be launched on Nov 1.
A 2021 report by consumer research and analytics firm Milieu showed that close to a fifth of Singaporeans aged 16 and above have used a BNPL service. Access will only be reinstated after the customer shows that he or she is up to date with all payments due or overdue, and has shown appropriate payment ability.For customers, who have signed up with a BNPL provider before Nov 1 this year, they may continue with their BNPL limit that was established earlier until either their credit assessment is completed or till Nov 1 next year — whichever is earlier.
Consumers are also entitled to make full repayment with BNPL providers at any time, without early repayment fees. During this time, consumers will also not be allowed to make any further transactions with the service providers.