Overview
- Regulation takes effect on Wednesday, July 15, 2026, and BNPL providers must be authorised by the Financial Conduct Authority to offer products.
- Under the new rules firms must assess customers’ creditworthiness, run affordability checks and give clear upfront information on payment dates, amounts and missed‑payment consequences.
- Customers who sign BNPL agreements from July 15 can take complaints about regulated firms to the Financial Ombudsman Service, which expects roughly 2,000 BNPL complaints this financial year.
- Reporting of BNPL accounts to credit reference agencies means timely payers could build credit history while missed payments may harm future borrowing for loans, cards or mortgages.
- Industry groups say the rules formalise practices such as pausing accounts and reporting, consumer advocates welcome stronger safeguards and debt charities urge people who struggle to seek free advice.