Overview

• On July 18 the FCA launched a consultation detailing rules to bring Deferred Payment Credit products under its remit, inviting feedback until September 26
• Under the proposals, BNPL lenders must conduct affordability checks on all loans, including amounts below £50, to prevent borrowers from taking on unmanageable debt
• Firms will be required to offer forbearance and tailored support for customers in financial difficulty, such as adjusted repayment plans and signposting to debt advice services
• Consumers will gain access to the Financial Ombudsman Service for complaints and Section 75 protections for refunds or compensation on faulty or undelivered goods
• The new regime takes effect on July 15, 2026, and providers have six months from that date to apply for full FCA authorisation before offering BNPL services