Overview
- The Financial Conduct Authority will require BNPL firms to be authorised and comply with its Consumer Duty when rules take effect on July 15, 2026, changing the legal status of the sector.
- Under the new regime firms must give clear upfront details of payment dates and amounts, carry out proportionate affordability checks before lending, and offer tailored help to customers who miss payments.
- Consumers will gain a formal complaints route to the Financial Ombudsman Service for BNPL disputes and redress that was not widely available under the previous unregulated regime.
- Shoppers using BNPL at major retailers such as ASOS, H&M, Currys and Apple should expect extra steps at checkout and possible refusals for frequent users, as firms act to prevent 'loan stacking' and over-borrowing.
- BNPL use has surged from roughly £60 million in 2017 to about £13 billion in 2024 and was used by around 10.9 million adults in the FCA's 2024 Financial Lives survey, a scale the regulator cites as the reason for tightening rules.