From Yahoo Finance: 2025-06-09 10:10:00

Some Afterpay customers in Australia are being asked to close their accounts to qualify for a mortgage, then offered a credit card. BNPL loans surged after COVID-19, with 10% of Afterpay customers offered credit cards by banks or brokers. Afterpay, owned by Block, leads Australia’s BNPL market.

Lenders must inquire about finances but can’t give advice. Commonwealth Bank and NAB deny telling applicants to close BNPL accounts. ANZ may suggest restructuring debts based on overall financial position. Afterpay accuses banks of viewing BNPL users as riskier than traditional borrowers.

Interest-accruing credit card debt in Australia has dropped by 30% in five years as borrowers seek cheaper alternatives. Afterpay’s survey shows BNPL users have credit scores and repayment records similar to credit card users. New legislation requiring BNPL firms to run credit checks on borrowers takes effect, aiming to improve transparency around creditworthiness.

Afterpay’s Head of Public Policy hopes the new legislation will enhance transparency around user creditworthiness. One in 10 Australian mortgages are arranged by brokers, who must ensure applicants’ ability to meet financial commitments. Responsible lending rules govern brokers’ actions in these situations.

Read more: Australia’s Afterpay says some BNPL users told to close accounts, then sold credit cards