hummgroup a founding member of the BNPL Code
AFIA Code of Practice
- hummgroup proudly supports the launch today of the new Buy Now Pay Later Code of Practice after two years of consultation between AFIA and BNPL peers.
- hummgroup led the establishment of the Code in 2019 for the benefit of consumers.
- The Code goes above and beyond the law and introduces a range of additional consumer protections, already undertaken and embedded as normal practice by hummgroup.
humm group limited (ASX: HUM) (“hummgroup” or the “Company”) is pleased to be one of the founding accredited members of Buy Now Pay Later (“BNPL”) industry body, Australian Finance Industry Association’s (“AFIA”) BNPL Code of Practice (the “Code”).
In relaunching its BNPL product in April 2019, hummgroup took a number of proactive steps to ensure a high level of consumer protection including:
- preventing consumers from making another purchase where they have missed a payment for an existing purchase
- utilising external data sources to check product suitability for higher value purchases
- simple, clear and transparent contract terms for merchants and customers, including upfront disclosure of all applicable fees and charges, with humm now offering the shortest and simplest merchant contract in the Australian BNPL market
- simple and accessible complaints management processes for customers, as well as access to the Australian Financial Complaints Authority as an external dispute resolution scheme
The Code endorses high industry standards of services for customers and builds best practices across the BNPL industry. It has been developed in close consultation with key stakeholders including consumer groups, Government, regulators, and businesses in the BNPL industry. Importantly, through the creation of the BNPL Code Compliance Committee there will be a robust framework in place to ensure ongoing compliance, and that any complaints can be escalated when necessary.
hummgroup Chief Executive Officer Rebecca James said;
“As the leading BNPL provider for purchases over $1,000 in Australia, we are proud to have called on the industry to come together and establish the Code back in 2019 and to see it realised today. Since we launched humm two years ago, we have worked hard to ensure our products are designed with the customer in mind and have adapted many of our practices over this time to meet this need.”
“The COVID-19 pandemic demonstrated that not only is BNPL used as a popular budgeting tool for people of all ages, but also that the industry is highly skilled at supporting the very small proportion of customers who do end up experiencing financial hardship.”
hummgroup continuously worked to improve consumer outcomes. This is demonstrated by low arrears rates, and less than 2% of BNPL revenue in Australia being earned from late fees, substantially less than other industry players. The Company’s focus is to always act in the best interest of customers.
Authorised for release by the hummgroup Disclosure Committee.