Buy now pay later hardship: how to ask your provider to pause or reduce repayments

If you cannot keep up with a buy now pay later plan, you can ask the provider for hardship help. ASIC says that since 10 June 2025, buy now pay later contracts are regulated as credit under the National Credit Code, and the Code lets you give a hardship notice, either verbally or in writing. Our reading that this applies to buy now pay later is drawn from ASIC’s guidance, set out below. Once the provider has enough information, it generally has 21 days to tell you its decision.

Claim Done drafts a buy now pay later hardship notice from your answers for a flat A$29. You download it straight away and send it to your provider yourself.

Buy now pay later is now credit

ASIC says new laws came into effect on 10 June 2025. They extend the National Credit Code to buy now pay later contracts. In its guide on low cost credit contracts, ASIC says that from that date buy now pay later contracts are regulated as a type of credit, and that most of them are regulated as “low cost credit contracts”. Some rules are changed for that kind of contract, but hardship is not among the changes ASIC lists. That ASIC guidance, with the points below, is what our reading that the hardship notice rules apply to buy now pay later rests on.

ASIC also says buy now pay later contracts are now caught by the meaning of “credit contract” in the Code, and that providers must hold an Australian credit licence and belong to the Australian Financial Complaints Authority (AFCA). Even if your plan started before June 2025, ASIC’s guide says you may make a hardship application or a complaint.

Moneysmart puts it simply on its buy now pay later page: all buy now pay later providers are required to have complaints and hardship services. Contact your provider if you are having trouble making repayments.

Who can ask for hardship help

Moneysmart’s financial hardship page says financial hardship is when you are unable to make a credit or loan repayment. You do not need to have missed a payment yet. ASIC’s FAQs talk about whether a person “is or will be unable” to meet their obligations, and Moneysmart says to take action straight away. If you can see a payment coming that you cannot cover, that is the time to ask.

When you ask for help, Moneysmart says your lender must consider you for hardship assistance. That can be temporary, like deferring a payment, or permanent, like varying a loan. Whether a request is granted is up to the provider.

What the provider must do, and when

ASIC’s credit FAQs explain section 72 of the National Credit Code. You can give the credit provider notice that you cannot meet your obligations under the contract. This is called a hardship notice. The time limits are:

When the provider asks for more information, ASIC says it should tell you to send it within 21 days of the request. Send it on time. If you do not send it, the provider has 28 days from its request to respond.

If you and the provider agree on a change that defers or reduces your repayments for more than 90 days, the provider must send you a written notice of the changes within 30 days of the agreement. For 90 days or less, no notice is required, so ask for one anyway.

If the provider says no, ASIC says it must tell you that it does not agree, give its reasons, and give you AFCA’s contact details and your right to complain to AFCA.

What your hardship notice should say

Moneysmart says a lender may ask for the reason you are in hardship, your income and other major expenses, and what repayments you can afford. A clear notice covers:

• your name as it appears on the account, and your account or order reference
• a plain statement that you are in financial hardship and cannot meet your repayments as they stand
• the amount owing and your current repayments
• a short, factual reason, such as reduced hours or illness
• what you want: a pause, a longer plan with smaller repayments, a lower amount, or their options
• what you can realistically pay meanwhile
• a request to treat it as a hardship notice and reply in writing

Moneysmart says to only agree to an amount you can afford to pay.

The structure of the notice

1. Heading and date. “Financial hardship notice”, addressed to the provider’s hardship team.
2. Account details. Your name and account or order reference.
3. Your situation. That you cannot meet the repayments as arranged, with the amount owing.
4. The reason. One or two sentences. Leave out anything you would rather not put in writing.
5. Your request. The change you want, and what you can pay meanwhile.
6. Next steps. Consider the request in the time required, hold further fees and any default listing meanwhile, and confirm any arrangement in writing.
7. Sign-off. Where to reply, your name and a signature line.

How to send it and what to keep

Moneysmart says the first step is to contact your lender’s hardship team, by phone, email or chat. A hardship notice can be given verbally, but a written one gives you a clear date for the 21-day clock. Search for “hardship” on your provider’s website and send it there. Keep a copy, the date sent, and every reply.

Late fees, missed payments and new purchases

Moneysmart lists late fees as one of the fees buy now pay later services may charge if you miss a payment or pay late. It also says some buy now pay later arrangements must have caps on the fees they can charge, and that you should check your contract to see if there is a fee cap. Late or missed buy now pay later payments can be reported and can reduce your credit score. A financial hardship arrangement, Moneysmart says, will not affect your credit score.

No official page we read says a provider must stop late fees while it considers a hardship notice. Your notice can still ask it to hold fees and any default listing in the meantime. On new purchases, ASIC’s guide gives “suspending access to credit if a consumer is in arrears or defaults” as one example of the steps a provider may take. So your provider may stop you making new purchases while you are behind. Check its terms.

If the provider says no or does not answer

Moneysmart’s guide to complaining sets out the order. First contact the business. If that does not fix it, make a formal complaint in writing. Put the word “complaint” in the heading, and set out the problem and the outcome you want. Keep a copy.

If the business did not respond in a reasonable time, or you are not happy with how it handled your complaint or its offer, you can go to AFCA. AFCA is free, independent and considers complaints about credit, finance and loans. Moneysmart lists its number as 1800 931 678, 9am to 5pm Monday to Friday, or you can complain online.

Mistakes to avoid

• Waiting until several payments are missed.
• Offering more than you can pay. If you cannot stick to an arrangement, Moneysmart says to tell your lender straight away and keep paying what you can.
• Ignoring a request for information.
• Writing it as a complaint. A hardship notice asks for help. Keep it calm, with no threats.
• Not keeping copies of what you sent and every reply.

Free help

A financial counsellor can help you apply for hardship, for free and in confidence. Moneysmart lists the National Debt Helpline on 1800 007 007, Monday to Friday 9:30am to 4:30pm, with live chat Monday to Friday 9am to 8pm. Aboriginal and Torres Strait Islander people can call Mob Strong Debt Help on 1800 808 488.

Claim Done can draft your buy now pay later hardship notice from your answers for A$29. You review it, download it and send it yourself. Claim Done is not a law firm and does not give legal or financial advice.