New buy now, pay later rules are coming – here’s what it will mean for you

If you use buy now, pay later (BNPL), you’re about to get much stronger protection.

The Financial Conduct Authority (FCA) has confirmed it will start regulating BNPL. That means the companies offering it will have to follow similar rules as banks and credit card providers.

What is BNPL?

BNPL lets you split the cost of something into instalments, usually over several months. You can buy now and pay later, often without interest.

It’s become hugely popular. Around half of UK adults have used it at some point.

But, if something goes wrong, you have very limited protection because BNPL isn’t fully regulated.

Financial experts, including us, have also seen how it can leave people struggling with debt, especially if they’re using it to cover everyday essentials.

When are the changes coming in?

From 15 July 2026, the FCA will officially take charge of the sector.

What will change?

The government first announced plans to regulate BNPL in 2021, but the changes were delayed. Now they’re finally happening and they’re designed to protect you.

Here’s what that means:

• Firms must be authorised by the FCA
  If a lender isn’t authorised, it won’t be allowed to offer you BNPL.
• You’ll get affordability checks
  Before you click ‘buy’, the lender will have to check you can actually afford the repayments.
• You’ll get help if you’re struggling
  If you fall behind or run into financial difficulty, firms will be required to offer you support.
• You’ll get clearer information
  You should be told exactly what you’re signing up to, in a way that’s easy to understand.
• You’ll be able to complain properly
  If something goes wrong and the company doesn’t fix it, you’ll be able to take your complaint to the Financial Ombudsman Service, giving you someone in your corner.

Why this matters

Our director of external relations, Sebrina McCullough, said: “This is a welcome step for protecting consumers, especially those in vulnerable situations.”

BNPL can be a useful, interest-free way to spread the cost of bigger purchases.

But our data shows more people are now using it to cover essentials, not just one-offs. In the last quarter of 2025, record numbers of people came to us for help with BNPL debt. Overall, contacts about BNPL debt have jumped 300% since 2023.

As Sebrina explains:

“Regulation will help make sure people aren’t borrowing more than they can afford, while still letting BNPL be a useful tool for those who need it.”

If you use buy now, pay later, you’ll soon have stronger rights, better checks, and more support if you need it.

And that means you’ll be better protected if you choose to spread the cost.