UK FCA brings BNPL under regulatory oversight

A major regulatory shift for the UK's financial sector takes effect today, July 15, 2026, as Buy Now, Pay Later (BNPL) services officially come under the oversight of the Financial Conduct Authority. The move brings new consumer protections to an estimated 11 million users of these short-term credit products but also introduces stricter affordability checks that could see some consumers denied access.

The new rules require all BNPL firms to be authorized by the FCA, bringing them in line with other credit providers like credit card companies. Key changes include mandatory affordability and creditworthiness assessments for each purchase, clearer upfront information about payment schedules and fees, and a requirement for firms to offer support to customers in financial difficulty, including signposting to free debt advice. Consumers will also gain access to the Financial Ombudsman Service to resolve complaints and will benefit from Section 75 protection on purchases between £100 and £30,000, holding lenders jointly liable with retailers for faulty or undelivered goods.

Industry leaders and consumer groups have largely welcomed the regulation after years of campaigning. A...