New Buy Now Pay Later Regulations

From 15 July 2026, Buy Now, Pay Later (BNPL) products provided by third-party lenders came under regulation by the Financial Conduct Authority (FCA), bringing Deferred Payment Credit agreements within the regulated consumer credit regime. Lenders must now be authorised by the FCA and comply with its consumer protection rules.

This change gives consumers greater protection when using services such as Klarna and Clearpay. Under the new rules, lenders must carry out affordability checks, provide clear information about repayments, and offer additional support to customers experiencing financial difficulties. Consumers can also take complaints to the Financial Ombudsman Service if they are unhappy with how a lender has treated them.

While these changes provide important safeguards, some consumers who have previously relied on BNPL may now find it more difficult to access these products. Affordability and creditworthiness assessments may result in some applications being declined where lenders consider the borrowing to be unaffordable. The aim is to help prevent people from taking on credit that could lead to financial difficulties.

While Buy Now, Pay Later can be a useful way to spread the cost of purchases, it is still a form of borrowing. Before taking out any credit agreement, it's important to consider whether the repayments are affordable and what could happen if payments are missed.

If you are struggling with Buy Now, Pay Later debt or any other financial commitments, contact your local Citizens Advice Bureau for free, confidential advice.

Karin Flavil 

Money Advice Worker