The Financial Conduct Authority (FCA) confirmed last month that new rules governing Buy Now, Pay Later (BNPL) will come into force on 15 July 2026. The move, which sees deferred payment credit officially brought under FCA regulations, will provide customers with greater levels of support around BNPL finance, as well as deeper affordability checks from lenders.
The new rules will require lenders to provide customers with clear information before taking out a BNPL product, with details about their agreement laid out upfront, including payment amounts, dates and what happens if they were to miss repayments.
Consumers will also be subject to affordability checks to ensure they can afford to repay what they are borrowing.
Support will be provided by lenders when customers are in financial difficulty, with guidance from free debt advice services.
Should there be unresolvable issues, consumers will be able to take their case to the Financial Ombudsman Service (FOS).
BNPL provider Payment Assist welcomed the move. Marcus Gregory, CEO of Payment Assist, said: “Bringing BNPL within the scope of FCA regulation is an important and positive step forward for the sector, with the relationship between retailers and customers set to fundamentally change.
Going forward, customers will receive clear disclosures, come under proportionate affordability checks, be offered stronger customer support and have access to the FOS for any unresolved disputes.
“The primary benefit revolves around affordability. With increased checks on a customer’s finances, they are less likely to be approved for BNPL lending when they will struggle to afford it. It does mean that there will likely be more applications turned down but, ultimately, it will see fewer customers come under financial strain.
