What do new ‘buy now, pay later’ protections mean for you?
Treasury says shoppers will get a ‘fairer deal’ as new rules for BNPL credit are introduced on WednesdayMillions of shoppers will enjoy more rights and protections from Wednesday a
By The Guardian
New rules for buy now, pay later (BNPL) services take effect in the UK on Wednesday, 15 July 2026, bringing the sector under regulation by the Financial Conduct Authority (FCA) for the first time and giving shoppers stronger protections. The Treasury said the changes will deliver a fairer deal for consumers by ending the BNPL “wild west” and ensuring lenders are authorised to offer credit.
From this date, BNPL firms must carry out proportionate affordability checks for every purchase, including items costing £50 or less, and provide clear upfront information about payment amounts, due dates and consequences of missed repayments. Providers will also be required to tell customers immediately if a repayment is missed, explain what is owed and how to remedy it, and signpost those in financial difficulty to free debt help services.
Shoppers will gain Section 75 purchase protection for BNPL items costing between £100 and £30,000, making the provider jointly liable with the retailer if something goes wrong, as is already the case with credit cards. Consumers will also be able to take unresolved complaints about BNPL agreements to the Financial Ombudsman Service, which can independently determine whether a customer has been treated fairly.
These protections apply only to BNPL agreements entered into on or after 15 July 2026; arrangements made before this date will not automatically benefit from the new rules. BNPL agreements may be reported to credit reference agencies, which could influence future lending decisions for some customers.
Firms without existing consumer credit permissions had to register for the FCA’s temporary permissions regime between 15 May and 1 July 2026, and must submit a full application by 15 January 2027 to maintain authorisation.