Adjustments to the customer journey help BNPL customers avoid debt collection fees

An extension of the period before handover to the debt collection agency in combination with an additional reminder helps customers to avoid debt collection fees

The AFM and BNPL provider in3 investigated the effect of a 14-day extension of the period before the handover to the debt collection agency and different versions of reminders during that period among 7,425 customers with payment arrears. The investigation showed that the adjustments did not lead to differences in the share of customers with payment arrears two months later. Nevertheless, the adjustments had a positive effect: the share of customers who were transferred to a debt collection agency and were charged debt collection fees (of at least €40) was almost a third lower than in the regular situation. In addition to the later handover to the debt collection agency, sending of an additional reminder and the content of this reminder turned out to be of great importance. Customers who received a reminder with information about the consequences of late payment paid earlier and were therefore less likely to be transferred to the debt collection agency.

Additional attention needed for customers with structural financial problems

For customers with structural financial problems, these kinds of adjustments are unlikely to offer a solution. As a result of the recast European Consumer Credit Directive (the CCD2), BNPL providers will have to comply with rules related to the provision of information and creditworthiness assessment by November 2026. BNPL providers will also be legally required to have adequate policies and processes in place for arrears management. In the meantime, BNPL providers can help customers with structural financial problems in other ways, for example by offering easily accessible payment arrangements, payment breaks and debt forgiveness.

The AFM calls on providers to investigate the effect of adjustments to the customer journey

This report illustrates how behavioural research can be used to put the interests of customers first. The AFM encourages BNPL providers to make adjustments to the design of the customer journey, so that it aligns as closely as possible with their customers. This encouragement also applies to other firms involved in arrears management, such as credit providers and debt collection agencies. When doing so, it is important to carefully investigate the effect of these adjustments.

Dowload the report (NL) below on our Dutch page. An English version of the report will be published soon.