Buy now, pay later lenders will soon have to check shoppers can repay loans
The big change coming to buy now, pay later scheme
- The Financial Conduct Authority (FCA) has launched a consultation proposing new rules for buy now, pay later (BNPL) lenders.
- The proposed regulations will require BNPL providers to conduct affordability checks on customers and offer support to those facing financial difficulties.
- Under the new rules, borrowers will gain the right to complain to the Financial Ombudsman Service if issues arise.
- These protections, which align BNPL with other forms of lending, are set to come into force when BNPL falls under the FCA's remit from 15 July 2026.
- The move comes amid growing concerns over unaffordable loans and increasing BNPL usage, with industry and consumer groups largely welcoming the enhanced consumer safeguards.