UK to Regulate Buy Now, Pay Later by 2026 Amid Debt Concerns

New regulations aim to protect consumers from unmanageable debt, but will not take effect until 2026, leaving current users without safeguards.

Martin Lewis and campaigners have long advocated for regulation of BNPL, highlighting its potential to lead consumers into debt.
The UK government plans to bring BNPL under the Financial Conduct Authority's oversight, applying the Consumer Credit Act to ensure affordability checks and clear information.
Critics question the delay until 2026, arguing that consumers remain vulnerable to debt accumulation in the interim.
The Financial Ombudsman Service will be available for disputes, and Section 75 protections will cover BNPL purchases, similar to credit cards.
The rapid growth of BNPL services has raised concerns about their marketing as lifestyle choices rather than debt, exacerbating financial risks for users.