Buy now pay later is now regulated: what changed on 15 July 2026
BNPL under FCA rules means affordability checks and Ombudsman access, but older agreements stay unregulated. Late fees still bite
Buy now pay later (BNPL), which the rules call deferred payment credit, came under Financial Conduct Authority regulation on 15 July 2026. It changes what providers must do before lending to you and where you can go when something goes wrong. This guide explains the new protections, what is still outside the rules, and how late fees and credit files work.
What is covered
The rules apply to interest-free credit repaid in instalments over 12 months or less, offered by a third-party lender at the checkout. That covers the familiar "pay in three" and "pay in 30 days" options on retail sites. Any agreement of that type entered into on or after 15 July 2026 is regulated.
Affordability checks
Providers now have to assess whether you can afford the repayments before lending, in proportion to the amount and risk. In practice this means more BNPL firms running credit checks, sometimes soft, sometimes hard, and occasionally declining people they would previously have accepted. It also means your total BNPL exposure across providers is more likely to be visible to other lenders.
Clear information
You must be told, in a clear format before you commit, the total you will pay, the instalment dates, what happens if you miss one, and how to complain. If you are offered BNPL at a checkout, it should no longer be presented as just another payment button with the terms buried in a link.
Support if you struggle
Regulated firms must treat customers in financial difficulty fairly. If you cannot make an instalment, tell the provider before the due date. They should discuss options rather than simply add fees and pass the debt to a collector.
The Financial Ombudsman
If you have a complaint about a regulated BNPL agreement and the provider does not resolve it within eight weeks, or gives a final answer you disagree with, you can take it to the Financial Ombudsman Service for free. This did not exist for BNPL before July 2026.
Section 75 of the Consumer Credit Act, which makes a credit provider jointly liable for faulty goods costing £100 to £30,000, does not automatically apply to all BNPL arrangements. Check the provider's terms. If the item is faulty, your first claim is still against the retailer under the Consumer Rights Act 2015, which gives you 30 days to reject faulty goods for a full refund.
What is still not covered
- Agreements you signed before 15 July 2026. These stay unregulated, and the Ombudsman cannot look at them.
- Instalment plans offered directly by a retailer without a third-party lender.
- Some invoice and trade credit arrangements.
Late fees and your credit file
Most BNPL providers charge a fixed late fee if an instalment fails, and some suspend your account until it is paid. Fees are capped by the provider's own terms rather than by a single regulatory limit, so read them.
Many providers now report to credit reference agencies. On-time payments can help a thin file. Missed payments are recorded like any other credit default and can stay on your file for six years. Several small BNPL plans running at once can also make you look overstretched to a mortgage lender, even if every one is paid on time.
Watch out for
- Stacking plans across several providers. Each one is small; together they are a debt.
- Automatic card payments failing because of an unrelated card change.
- Returning goods. The retailer refund and the BNPL plan are separate; confirm the plan has been cancelled or adjusted.
- Using BNPL for essentials. Free regulated debt advice is available from StepChange, National Debtline and Citizens Advice if instalments are becoming hard to meet.