As the heat turns up on ‘buy now pay later’ schemes trapping a growing number of Kiwis in spirals of debt, HELL is launching AfterLife Pay, where customers don’t have to pay for their pizza until they’re dead, with no late fees or penalties.
Customers will be eligible for AfterLife Pay, with those chosen invited to sign a real amendment to their wills, allowing the cost of their pizza to be collected upon death. No interest or fees will apply, and the agreement is legally binding.
Ben Cumming, CEO of HELL, said that AfterLife Pay came about after they were approached by buy now pay later (BNPL) providers who wanted HELL to offer the service to its customers.
“We’re seeing a growing number of people using the schemes to buy essential items like food, and we think it’s taking it a step too far when you’ve got quick service restaurants like ours being asked to offer BNPL for what is considered a treat - especially when you consider people are falling behind in their payments and 10.5 percent of loans in New Zealand are in arrears,” he said.
Australia’s federal government has recently announced it would regulate the BNPL industry to avoid financial abuse by lending schemes. However, while the New Zealand government has announced it will also regulate the industry, applying the Credit Contracts and Consumer Finance Act 2003 to the sector, final regulations are yet to be confirmed, including the proposal that affordability assessments only be carried out for purchases that are $600 or higher.
“An investigation from Consumer NZ describes the schemes as ‘addictive’ and says being approved is easier than getting a credit card - when you add in the late fees and penalties, people can get into debt fast. We don’t think people should do this for their pizza - we would prefer they purchase HELL within their financial means,” Cumming said.
The trial is being tested on 666 people, which will then be extended to another 666 more. All participants will sign a legally binding agreement online for the cost of their chosen order.
Cumming said pizza is one of the simple joys of life, and AfterLife Pay means people can get their fix without having to dip into the bank account immediately.
“AfterLife Pay is a light-hearted campaign that reinforces HELL’s stance on buy now pay later schemes - you can have your pizza and eat it too without any pesky late fees or penalties”.
