Starting on 15 July, new regulations will come into effect in England to protect consumers using Buy Now Pay Later (BNPL) services. These services, which allow shoppers to pay for purchases in instalments, have become popular for their convenience—but they can also lead to unexpected debt.
Under the new rules set by the Financial Conduct Authority (FCA), BNPL providers must carry out affordability checks for every purchase, regardless of price. This means that whether you’re making a small purchase under £50 or a larger one, the provider is required to ensure you can afford to repay. Previously, checks were often only conducted when opening an account.
Providers must also give clear, upfront information about payment terms, including the total amount payable, due dates, and the implications of missed payments. If a payment is missed, lenders must notify customers immediately, explaining what is owed, the consequences, and how to resolve the issue.
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In addition, BNPL agreements for items costing between £100 and £30,000 will now be covered under Section 75 protection—similar to credit cards—offering consumers added security when making significant purchases.
Martin Lewis, financial expert and broadcaster, welcomed the change, emphasizing the importance of regulation: “Buy Now Pay Later isn’t inherently bad if used responsibly to spread costs interest-free. But it needs the same protections as other forms of credit because it is a form of debt.”
He also highlighted that the process is not yet complete, noting that consumers will not be able to escalate complaints to the Financial Ombudsman Service until a year after the new rules begin, on 15 July 2026. Lewis advises consumers to remain cautious when using BNPL services during this transitional period.
These new rules represent a significant step in ensuring that BNPL services operate with greater transparency and responsibility, helping consumers avoid unmanageable debt and supporting safer shopping habits.