Buy Now Pay Later: the FCA rules in force since 15 July 2026
Published · 3 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
Buy now pay later is now regulated by the Financial Conduct Authority. This guide explains which agreements are covered, what lenders must do, which are left out, and where to complain or find free debt help.
Who this guide is for
This is general information for people in the UK who use, or are thinking about using, interest-free buy now pay later (BNPL) at the checkout. It is not advice for your own situation. The FCA covers the whole UK, so the same rules apply in England, Scotland, Wales and Northern Ireland.
The details below were checked on the FCA and GOV.UK websites on 12 October 2026.
What changed
From 15 July 2026, the FCA began regulating a product it calls deferred payment credit (DPC), which is what most people know as BNPL. Lenders now need to be authorised by the FCA, or be covered by a temporary permissions arrangement while they apply.
What counts as regulated DPC
The FCA describes DPC as an interest-free form of credit, repayable in 12 or fewer instalments over 12 months or less. It is regulated when the lender and the business selling you the goods or services are different.
If you buy from a business and use credit that is provided by that same business, the FCA says it is not regulated. This is sometimes called merchant own credit. So two checkouts that look alike can be treated differently.
What lenders must now do
- Check whether you can afford to repay before you take out an agreement.
- Give you key information before you sign, including the amount borrowed, when and how much you repay, any late fee, and your rights and protections.
- Contact you if you miss a repayment and explain what it means.
- Provide support if you are struggling to repay, and where appropriate point you to free debt advice.
Complaints and refunds
If you have a problem, the FCA says to raise it with the lender first. If you are not happy with the reply, you can complain to the Financial Ombudsman Service, which is free to use.
The FCA also says that if something goes wrong with a purchase, you may be able to get a refund from the lender under Section 75 of the Consumer Credit Act. It describes this as the same protection you would have if you paid by credit card. Whether it applies depends on the details of the purchase.
If repayments are hard
Missing a payment can lead to late fees, and several small agreements can add up. Free, independent help is available from MoneyHelper, whose Debt Advice Locator helps find free services in your area, and from charities such as StepChange and Citizens Advice. Many people find it helps to speak to one early.
Check before you act
Rules and firms' terms can change. It is worth confirming the details on the official pages linked below, and reading the agreement itself, before relying on anything here.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
