Buy Now Pay Later lenders are being told to stop turning a blind eye to people falling into debt spirals using their services.
The government is planning tighter regulations for the providers - including affordability checks for loans over $600.
But financial mentoring group FinCap says that's still too high.
FinCap Chief Executive Ruth Smithers says its unfair that a quarter of the companies' revenue comes from late fees.
She spoke to Māni Dunlop.
