Dutch MPs back 18-year age limit for buy-now-pay-later services

The Tweede Kamer, the lower house of Dutch parliament, is positive about a bill that would introduce an 18-year minimum age for using buy-now-pay-later services, among other measures. The support became clear during a parliamentary debate on the proposal.

Some parties are even pushing for a higher age limit. These include the CDA, SGP and the ChristenUnie. The latter are pleading for a 21-year minimum age, because it is mainly young adults who are contacted by collection agencies after using services like Billink, Klarna, and Riverty.

“The risks do not end at someone’s 18th birthday,” said Inge van Dijk. The CDA MP wants the figures concerning 18- to 21-year-olds to be assessed closely and for the limit to rise if necessary.

Finance Minister Eelco van Heinen thinks that the potential new rules would lead to a drop in late payments for young adults. “This is a first step, an age limit. But it is not as if we are going to sit by and do nothing after this.”

Van Heinen feels raising the limit to 21 is going too far. “You can buy a home, apply for a credit card, or enter the army when you are 18.” The minister said there must be a valid justification for imposing age restrictions on people over 18. “At this point, there is insufficient evidence to justify doing so for buy-now-pay-later services,” the minister said. The legislation will also introduce rules governing advertising for these financial services. The rules could always be tightened at a later stage, the minister added.

The bill implements European rules on consumer credit and would also require buy-now-pay-later purchases above 250 euros to be registered. The credit register, which records outstanding debts, would also have to be checked for purchases of 100 euros or more made through such services. The new rules are expected to take effect in November, a year after the deadline set by the European Commission.

Several political parties raised concerns about people accumulating multiple payment arrears. Consumers can make small purchases through different providers, potentially leaving them with a much larger overall debt. It is not yet clear exactly how the registration system will work. Van Heinen said legislation detailing the system will follow next spring.

MPs also raised concerns about buy-now-pay-later services being offered in physical stores. However, Van Heinen said it would not be possible to ban the practice only in physical shops. “You would have to ban it altogether, but that would not be desirable either,” he said.

Several MPs, as well as Van Heinen, argued that paying later can be useful when buying clothes that need to be tried on. They also said the payment method can offer some protection against fraud because customers do not have to transfer their money immediately.