Millions of shoppers using Buy Now Pay Later (BNPL) services in the UK will benefit from stricter rules and greater protections from July 15, 2026. Lenders such as Klarna and Clearpay will fall under the Financial Conduct Authority’s (FCA) regulation for the first time, introducing affordability checks, mandatory support for those in financial difficulty, and the ability to escalate complaints to the Financial Ombudsman Service.
What New Rights Will Consumers Have?
Jonathan Chesterman, debt advice policy manager at StepChange, explained: "If something goes wrong, shoppers have the right to complain to the BNPL provider. If shoppers don’t receive a satisfactory response, they can then approach the Financial Ombudsman Service, which is free and objective." Previously, unresolved complaints could only be pursued through court cases under contract law. Shoppers will also receive clearer information about their commitments and what happens if they miss payments.
Affordability Checks: What Will They Entail?
While the exact checks remain unspecified, Chesterman said there "should be warnings" at minimum, or a calculator at checkout to show repayment amounts. Lenders will have to ask customers or conduct a more detailed assessment of income and outgoings. He noted that the new checks address "two big problems": no credit checks currently allow people in financial difficulty to take on more debt, and StepChange has seen clients with over 30 BNPL agreements. Affordability checks should prevent lenders from passively allowing such accumulation.
What About Existing BNPL Agreements?
Any BNPL agreements taken out before July 15 will not be covered by the new rules. Shoppers juggling multiple agreements are advised to review them now and ensure they have a clear picture of what they owe and when payments are due. Those in debt should seek free advice from Citizens Advice, which helps with unexpected costs, late fees, and debt collector contact.
