Starting July, customers utilizing buy now, pay later services will be subject to affordability assessments and will be provided assistance if faced with issues, as stricter safeguards are set to be implemented.
Commencing from July 15, 2026, the buy now, pay later sector will fall under the regulation of the Financial Conduct Authority (FCA). Individuals engaging in buy now, pay later transactions must be furnished with transparent and upfront information regarding their agreements.
This disclosure should outline payment deadlines, amounts due, and the consequences of missed payments.
Buy now, pay later providers are also mandated to conduct assessments ensuring customers have the means to repay borrowed funds.
Furthermore, support services must be extended to customers encountering financial challenges, including guidance on accessing free debt advice.
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Users of buy now, pay later services will also have the right to lodge complaints with the Financial Ombudsman Service (FOS) if they believe they have been treated unfairly.
Lenders will