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The new Buy Now, Pay Later rules explained

Martin Lewis issues warning to people paying too much on their phone contract

New regulations for Buy Now, Pay Later (BNPL) services, such as Klarna and Clearpay, will come into force from 15 July 2026, as announced by the Financial Conduct Authority (FCA).
From this date, borrowers will benefit from stronger protections, including mandatory affordability checks by firms, support for customers in financial difficulty, and clear information about agreements.
Customers will also gain the right to escalate complaints to the Financial Ombudsman Service if issues arise, and BNPL lenders will need to be authorised by the FCA to operate.
Currently, the BNPL sector is largely unregulated, offering limited protection to users despite the government first announcing regulation plans in January 2021.
Debt charity StepChange welcomed the long-awaited regulations, advising users to always check affordability and seek free debt advice if struggling with repayments.

Key changes for Buy Now, Pay Later rules confirmed – and the exact date it comes into force — In full