In a blog and a speech by Director of Consumer Finance Alison Walters, the Financial Conduct Authority said it will begin regulating Buy Now Pay Later on 15 July for the first time. The regime will bring BNPL into the existing consumer credit framework and give borrowers clearer pre-contract information, proportionate affordability checks, support if they fall into repayment difficulty, access to the Financial Ombudsman Service and, in some cases, Section 75 refund rights under the Consumer Credit Act. The FCA said it has chosen a proportionate approach rather than creating a wholly new regime, with firms expected to apply existing consumer credit rules and the Consumer Duty and to tailor affordability assessments to the product and the customer’s circumstances. It acknowledged that some regular BNPL users may find access harder once checks apply, but said the aim is to reduce repeated borrowing without a clear view of what is owed and to limit unsustainable debt. Firms will also be required to provide appropriate support to customers in difficulty, including possible forbearance and signposting to free debt advice. In the related speech, Walters placed BNPL within a broader consumer credit agenda that includes planned FCA consultation on key parts of the consumer credit framework as legislative reform progresses, ongoing consultation on whether Representative APR disclosures support consumer understanding, and a review of the high-cost short-term credit price cap, where the FCA said it currently sees no evidence for change. The FCA said it will monitor how the BNPL market evolves once regulation takes effect, including changes in access over time, using regulatory reporting and its Financial Lives survey. Walters also said the authority will publish examples of good and poor practice on artificial intelligence later this year and hopes to conclude its work on the high-cost short-term credit cap shortly.
Financial Conduct Authority2026-06-25
Financial Conduct Authority confirms Buy Now Pay Later regulation from 15 July and sets out wider consumer credit priorities
The Financial Conduct Authority said in a blog post that it will start regulating Buy Now Pay Later on 15 July, introducing clearer pre-contract information, proportionate affordability checks and support for borrowers in difficulty. Consumers will also gain access to the Financial Ombudsman Service and, in some cases, Section 75 refund rights. The FCA said it will monitor how the market and access to BNPL change after the regime takes effect.