HKMA Imposes Rules for ‘Buy Now, Pay Later’ Products at Banks

The Hong Kong Monetary Authority said that banks must implement seven consumer-protection measures for “Buy Now, Pay Later” products by the end of this year, according to a statement on Friday.

• Among the new rules:
  • Banks must clearly disclose that such offerings are credit products and include educational messages
  • During the approval process for any applications, banks must assess the applicant’s credit status and take into account their ability to repay
  • Banks are required to specify that if the borrower is overdue in repayment, it may adversely affect the customer’s credit record
• Rules were announced in a circular distributed to ...