New Buy Now, Pay Later Protections Take Effect in the UK

Millions of people use Buy Now, Pay Later to spread the cost of purchases, often without thinking of it in the same way as a credit card or loan. From 15 July 2026, new protections for BNPL borrowers have come into force.

Under the new rules, third-party Buy Now, Pay Later lenders covered by the regime come under the oversight of the Financial Conduct Authority (FCA). The changes are designed to give consumers stronger safeguards and clearer information before they borrow.

Lenders will need to carry out creditworthiness assessments before providing regulated BNPL credit, taking into account the risk that customers may be unable to make repayments without experiencing financial difficulty. Consumers should also receive clearer information about their agreements, while those who fall into financial difficulty will have greater protections and support.

Another significant change is access to the Financial Ombudsman Service, giving eligible consumers a route to make a complaint if they are unable to resolve a dispute directly with their BNPL lender.

Qualifying purchases may also benefit from Section 75 protection, which can make the lender jointly responsible with the retailer if something goes wrong with a purchase costing more than £100 and up to £30,000. Whether Section 75 applies depends on the specific transaction and agreement.

The reforms could also mean some existing BNPL users find it harder to access this form of borrowing. Fair4All Finance has estimated that tighter checks could prevent 2 to 3 million of the UK's more than 10 million BNPL users from continuing to access these services, although major providers have played down those concerns.

For consumers, the changes bring regulated BNPL lending closer to other forms of regulated credit. Spreading the cost of a purchase can make payments feel smaller and more manageable, but it still creates a debt that needs to be repaid.

The new protections won't remove the risks of borrowing or guarantee that every complaint or purchase will be covered. But they should give consumers clearer information before taking on BNPL debt and stronger routes for support and redress when something goes wrong.