United Kingdom

Buy Now Pay Later debt and the 2026 FCA rules

Understand Buy Now Pay Later debt and the major FCA regulatory change that took effect on 15 July 2026.

A major UK regulatory change took effect on 15 July 2026: the FCA began regulating Deferred Payment Credit, the interest-free form of Buy Now Pay Later repaid in 12 or fewer instalments over 12 months or less. Providers offering this form of credit now need FCA authorisation or temporary permission to continue operating.

What changed in July 2026

Before 15 July 2026, Deferred Payment Credit was generally outside FCA regulation. The FCA now regulates this category and consumers can check whether a lender is authorised or has temporary permission.

If you have missed payments

Contact the lender rather than ignoring arrears, ask what repayment support is available and get free debt advice if the BNPL balance is part of wider financial difficulty.

Not all BNPL products are identical

Interest-bearing credit and Deferred Payment Credit can sit under different regulatory structures, so always identify the exact product and lender before relying on general guidance.

Related guidance

Important: This page provides general information, not regulated financial or legal advice. Rules and enforcement processes can depend on the debt, court, creditor and jurisdiction.