Customers using buy now, pay later services will soon be subject to new regulations aimed at ensuring their financial well-being. Starting July 15, 2026, the Financial Conduct Authority (FCA) will oversee this sector, mandating that users receive transparent information about their payment agreements upfront. This includes details on payment schedules, amounts due, and consequences of missed payments.
Moreover, buy now, pay later lenders will be required to conduct affordability checks to confirm that customers can feasibly repay their borrowings. In cases of financial hardship, users will be guided towards free debt advisory services.
Users will also have the option to escalate complaints to the Financial Ombudsman Service if they feel they’ve been treated unfairly. Additionally, lenders must seek authorization from the regulator and adhere to Consumer Duty rules, which elevate consumer protection standards in the UK financial arena.
The buy now, pay later market, which reached £13 billion in 2024 according to the FCA, witnessed 10.9 million adults utilizing such services in the year leading up to May 2024. Sarah Pritchard, FCA’s deputy chief executive, expressed the importance of ensuring responsible lending practices to safeguard the financial stability of over 11 million users.
Peter Tutton, from StepChange Debt Charity, highlighted the benefits and risks associated with buy now, pay later schemes, emphasizing the necessity for protective measures like affordability checks, ongoing support, and access to dispute resolution mechanisms. He urged users to assess their repayment capacity and seek assistance if needed from organizations like StepChange.
For efficient news retrieval, designate Daily Mirror as a ‘Preferred Source’ on Google News to access your preferred content promptly.
To enhance user experience and provide personalized advertising, we and our partners at Reach and its affiliated entities gather device information through cookies and other identifiers. You can modify your data sharing preferences by selecting the “Do Not Sell or Share my Data” option at the bottom of the page. Your consent to our use of cookies and data practices is implied when using our services. Review our Cookie Policy, Privacy Notice, and Terms and Conditions for further details.