The Government is defending softer rules for Buy Now, Pay Later lenders than initially promised.

Providers like AfterPay and LayBuy will soon be made to complete a credit report for new customers.

It had proposed full affordability assessments to force providers to check shoppers can afford debt repayments.

The lenders offer people interest-free loans and make money by charging when payments are missed.

Consumer Affairs Minister Duncan Webb says a full assessment would have been too cumbersome.

"We want to make sure that we get a proportionate regulation, and they do need to check whether there's defaults and other card and things like that."

LISTEN ABOVE 

The Government is defending softer rules for Buy Now, Pay Later lenders than initially promised.
Providers like AfterPay and LayBuy will soon be made to complete a credit report for new customers.
It had proposed full affordability assessments to force providers to check shoppers can afford debt repayments.
The lenders offer people interest-free loans and make money by charging when payments are missed.
Consumer Affairs Minister Duncan Webb says a full assessment would have been too cumbersome.
"We want to make sure that we get a proportionate regulation, and they do need to check whether there's defaults and other card and things like that."
LISTEN ABOVE

With a straight down the middle approach, Heather du Plessis-Allan Drive on Newstalk ZB delivers the very latest news and views to New Zealanders as they wrap up their day.