Struggling with buy now pay later? Your rights since July 2026

Buy now pay later used to sit outside financial regulation. That changed on 15 July 2026, when the government’s new rules came into force and the FCA took over supervision. If you’re juggling several plans and falling behind, here’s what the change means for you.

What’s changed

The new rules cover Deferred Payment Credit. That’s interest-free credit, repaid in 12 or fewer instalments within 12 months, where a separate lender pays the shop for you. Plans from firms such as Klarna, Clearpay or PayPal (Pay in 3) are the kind of products people usually mean by BNPL.

Some plans fall outside the rules. A shop that lends to you directly, rather than through a separate lender, isn’t covered.

Lenders now need to be authorised by the FCA, or be in the temporary permissions regime. Firms in that regime can keep lending while they apply for full authorisation, and they have six months from 15 July 2026 to apply. You can check a lender’s status on the FCA’s Firm Checker.

What lenders must now do

Under the FCA’s rules, BNPL lenders must:

• carry out proportionate affordability checks before lending
• give you clear information up front, including payment dates, amounts and what happens if you miss a payment
• support you if you’re in financial difficulty
• point you to free debt advice where that’s suitable
• follow the Consumer Duty, the FCA’s rules on good outcomes for customers

The government’s announcement said anyone who falls into financial difficulty will be directed towards debt advice and support first.

Older agreements

The date of your agreement matters.

Even for older plans, it’s still worth asking the lender for help. You may simply have fewer formal rights if it says no.

What to do if you can’t pay

1. Contact the lender before you miss a payment. Explain what’s happened. The FCA says the help offered should suit your circumstances, which could include accepting lower payments or giving you more time.
2. List every plan you have. Small instalments across several apps can add up to more than you think. Write down each lender, the amount and the due date.
3. Pay priority debts first. BNPL is a non-priority debt, like a credit card or catalogue. Rent, council tax and energy come first. Read priority debts.
4. Don’t borrow to repay. Using one BNPL plan, a credit card or a payday loan to cover another usually makes the problem bigger. If you have card debts too, read can’t pay your credit card?
5. Get free debt advice. A debt adviser can look at everything together. See MoneyHelper and debt charities.

Can a BNPL lender take you to court?

Yes. Like other non-priority creditors, a BNPL lender can take you to court for a county court judgment if you don’t pay. Under the new rules, the lender must support you if you’re struggling, so getting in touch early gives you the best chance of agreeing payments you can afford. Read what is a CCJ?

Debt solutions that can include BNPL

BNPL debts can be included alongside your other non-priority debts in:

• a debt management plan, with one affordable monthly payment. Read debt management plans explained
• Breathing Space, which pauses most action and charges for 60 days while you get advice
• a Debt Relief Order, if your income is low and you don’t own much. Try our DRO checker
• an IVA or bankruptcy, if your debts are larger

Complaining about a BNPL lender

If you think a lender lent irresponsibly, didn’t explain the terms or isn’t helping now you’re struggling, complain to the lender first. If you’re not happy with the answer, you can take a complaint about an agreement made on or after 15 July 2026 to the Financial Ombudsman Service. It’s free.

Frequently asked questions

Is buy now pay later a priority debt?

No. It’s a non-priority debt, like a credit card or loan. Deal with rent, council tax and energy first, but don’t ignore BNPL.

Can buy now pay later go into a DRO?

Yes. BNPL can be included in a Debt Relief Order along with your other qualifying debts, if you meet the eligibility rules.

Do the new rules cover BNPL plans I took out before July 2026?

No. The FCA says the new protections don’t apply to agreements made before 15 July 2026. You can still ask the lender for help.

How do I check whether my BNPL lender is regulated?

Use the FCA’s Firm Checker. It shows whether a firm is authorised or in the temporary permissions regime.

Sources

• FCA, Buy Now Pay Later
• FCA, Regulating Buy Now Pay Later (BNPL)
• FCA, New protections confirmed for Buy Now Pay Later borrowers
• FCA, PS26/1: Regulation of Deferred Payment Credit (unregulated Buy Now Pay Later)
• FCA, Why stronger Buy Now Pay Later protections are the right step for consumers
• GOV.UK, Government delivers fairer deal for shoppers as Buy-Now, Pay-Later rules come into force