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3w ago

FCA Brings Buy Now, Pay Later Under Regulation From July 15

The move forces providers to gain authorisation, run purchase‑level affordability checks, give new complaint and consumer protections, with potential to change who can use BNPL.

It's common for people to borrowing money or use credit in a pinch but it's important to ensure payments are affordable. Image: Rupixen / Unsplash
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Overview

  • The Financial Conduct Authority's new BNPL rules took effect on Wednesday, 15 July 2026, moving the sector into the FCA's remit and requiring firms to be authorised to offer agreements.
  • Under the rules firms must follow the Consumer Duty and carry out proportionate affordability or credit checks at the point of sale, which could lead to some shoppers being refused BNPL at checkout.
  • Consumers now get clearer upfront terms, mandatory support for people in financial difficulty, the right to escalate eligible agreements to the Financial Ombudsman Service, and Section 75 protection for qualifying purchases between £100 and £30,000.
  • BNPL activity may be reported to credit reference agencies so timely payments can help credit profiles while missed payments could harm future applications for loans, cards or mortgages.
  • The changes affect a market that served about 10.9–11 million adults and topped £13bn in 2024, with industry broadly welcoming formal rules while charities warn tougher checks could push some people toward costlier credit; reports also say firms may have a limited window to apply for full FCA authorisation, a detail still developing.