From tomorrow, July 15, 2026, buy now pay later (BNPL) customers will benefit from new protections as the sector falls under the supervision of the Financial Conduct Authority (FCA). The changes require firms to provide clear, upfront details about agreements, conduct affordability checks, and offer support to those in financial difficulty.
What the New Regulation Means for Customers
Under the new rules, BNPL lenders must give customers clear information about payment due dates, amounts, and consequences of missed payments. Lenders must also carry out proportionate checks to ensure customers can afford to repay before offering BNPL. This aims to prevent customers from taking on debt they cannot manage.
Additionally, BNPL usage may now appear on credit reports, potentially affecting future lending decisions—positively or negatively depending on the borrower's financial behaviour. Firms must offer support to customers in financial difficulty and, where appropriate, direct them to free debt advice.
Complaints and Dispute Resolution
BNPL customers will have the right to complain to the Financial Ombudsman Service (FOS) if they are unhappy with an agreement, such as its affordability. Complaints can be made about agreements taken out on or after July 15, 2026, involving regulated firms. Customers must first complain to their BNPL provider; if unsatisfied, they can escalate to the FOS, which is free for consumers.
Risks and Advice for Consumers
BNPL can tempt shoppers to spend more than budgeted. Charity StepChange advises pausing to consider whether items would be purchased if not available on credit. Keeping track of payments and terms helps ensure they fit within a budget. Those struggling with loans should contact their lender or seek help from organisations like StepChange, Citizens Advice, Christians Against Poverty, or National Debtline.
Some BNPL providers have welcomed the regulation as a way to level the playing field, noting they already offer strong consumer protections.
