The closure of popular Australian buy now, pay later service, LatitudePay, has left over 500,000 customers in the lurch, impacting more than 5,000 retailers including The Good Guys, Harvey Norman, JB Hi-Fi, and Kogan.
LatitudePay, which allowed customers to spread the purchase cost of products over ten weekly interest-free payments, announced its closure in an email to customers on Friday.
The company’s collapse came as a shock, but it has since emerged that customers had left negative comments and reviews for six months before its closure.
Although LatitudePay maintained an average customer rating of 3.5 stars on productreview.com.au, the last 20 reviews all gave the company one star, with customers demanding refunds and complaining about the app and customer service.
LatitudePay’s owner, Latitude Financial Services, said the closure followed an extensive review and was due to its immateriality to the business and the uncertainty surrounding the future regulatory environment.
The collapse of LatitudePay followed the receivership of Openpay, another buy now, pay later company, and prompted a call for greater regulation of the industry.
The government has invited submissions into three reform options recommended by Treasury and is considering putting in place credit checks to ensure consumer protection.
»LatitudePay to shut down after complaints from angry customers«
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