The Financial Conduct Authority has published final rules and guidance to bring Deferred Payment Credit (DPC), the currently unregulated form of Buy Now Pay Later (BNPL), within its regulatory perimeter from 15 July 2026. The package applies the Consumer Duty and most existing consumer credit conduct standards to DPC lending, and sets out the authorisation and temporary permissions arrangements for firms that want to continue offering the product. The regime covers interest-free credit used to finance goods or services and repayable in 12 or fewer instalments within 12 months. Key requirements include new pre-contract product information (split between “key” and “additional” information) and provision of documents in a durable medium after agreement, proportionate creditworthiness assessments under the existing CONC framework (including for agreements below £50), and new rules on communications after missed payments and on giving notice before certain enforcement or termination actions, including signposting to free and impartial money guidance and debt advice for borrowers in arrears. Complaint handling rules under DISP apply and the Financial Ombudsman Service’s compulsory jurisdiction is extended to regulated DPC agreements entered into on or after 15 July 2026 when activities are carried on from a UK establishment, while FSCS cover is not extended; regulatory reporting requirements are applied, including Product Sales Data reporting subject to existing de minimis thresholds of GBP 2m in new advances or GBP 2m in outstanding balances. Firms without the necessary consumer credit permissions that wish to continue DPC lending after 15 July 2026 must register for the Temporary Permissions Regime (TPR) if eligible, with the notification window open from 15 May 2026 to 1 July 2026, and then apply for full authorisation within six months of the regime taking effect. Firms that neither hold the required permission nor enter the TPR will be prohibited from entering new DPC agreements after 15 July 2026, though they may continue to service agreements entered into before that date, which will remain unregulated.
Financial Conduct Authority 2026-02-11
Financial Conduct Authority finalises rules to regulate Deferred Payment Credit Buy Now Pay Later from 15 July 2026
The Financial Conduct Authority (FCA) released PS26/1, detailing final rules to regulate Deferred Payment Credit (DPC) products under the FCA consumer credit regime from 15 July 2026. The framework includes conduct, creditworthiness, and reporting requirements for DPC lenders, while merchants brokering DPC agreements remain exempt. Firms must register for the Temporary Permissions Regime by 1 July 2026 to continue offering DPC post-Regulation Day.