Buy Now Pay Later

What Buy Now Pay Later is, how it works, what protections have changed from 15 July 2026, your rights if something goes wrong and where to get help.

Last updated on 15 July 2026

In this guide…

What you need to know about your refund rights

  • Buy Now Pay Later is a form of borrowing. It can help spread the cost of purchases, but missed payments can lead to fees, debt problems and damage to your credit score.
  • From 15 July 2026, many Buy Now Pay Later agreements came under FCA regulation for the first time. This means stronger protections for consumers using this type of credit.
  • For regulated BNPL agreements taken out from 15 July 2026, lenders must give you clear information upfront, including what you’ll repay, when payments are due and what happens if you miss one.
  • Lenders must carry out proportionate affordability checks before offering BNPL, to help make sure you can afford to repay.
  • If something goes wrong with a purchase over £100 and up to £30,000, you may be able to make a Section 75 claim against your BNPL lender – but this protection only applies to covered agreements taken out from 15 July 2026, not older unregulated BNPL agreements.
  • If you have an unresolved complaint about a covered BNPL agreement taken out from 15 July 2026, you’ll be able to take it to the free, independent Financial Ombudsman Service.
  • Agreements taken out before 15 July 2026 remains unregulated. The new protections do not apply retrospectively.

What is Buy Now Pay Later?

Buy Now Pay Later, often shortened to BNPL, is a type of credit offered at the checkout – online, in store or through apps – that lets you spread the cost of a purchase.

If you keep to your repayment plan, you usually won’t pay interest or charges. But BNPL is still borrowing, and it can cause problems if repayments build up or you miss payments.

When offered BNPL, you’ll usually choose between:
  • Paying in several instalments – often fortnightly or monthly over a few weeks or months.
  • Paying the full amount after a fixed interest-free period – for example, after you’ve had time to try an item and return it if needed.

BNPL can be useful if you use it carefully and can afford the repayments. But it should not be treated as “free money”. If you are already relying on credit to cover essentials, BNPL can make things harder to manage.

What changed from 15 July 2026

From 15 July 2026, many BNPL agreements are regulated by the Financial Conduct Authority (FCA). BNPL firms are also now subject to the Consumer Duty, which requires financial firms to put customers at the heart of what they do.

This is a significant change, because some widely used BNPL products previously sat outside normal credit regulation. For covered agreements taken out from 15 July 2026, consumers now benefit from:

  • Clearer information before they borrow – including repayment dates, amounts and what happens if they miss a payment
  • Affordability checks – lenders must consider whether customers can afford to repay before offering BNPL
  • Better support if customers get into financial difficulty – including being pointed towards free debt advice where appropriate
  • Access to the Financial Ombudsman Service – if a complaint cannot be resolved with the lender directly
  • Potential Section 75 protection – if something goes wrong with a purchase over £100 and up to £30,000

These protections only apply to BNPL agreements covered by the new rules and taken out from 15 July 2026. If you used BNPL before that date, your agreement remains unregulated.

What BNPL agreements are covered?

The new rules apply to a type of BNPL called Deferred Payment Credit, or DPC.

This is where the business selling you the goods or services and the lender providing the credit are different businesses. This is the most common type of BNPL.

For example, if you buy clothing from a retailer but the credit is provided by a separate BNPL company, that agreement is likely to be covered.

BNPL lenders offering covered agreements must now be FCA-authorised or have temporary permission while they apply for full authorisation.

You can check whether a firm is authorised, or has temporary permission, using the FCA Firm Checker: fca.org.uk/consumers/fca-firm-checker

What BNPL agreements are not covered?

Not all BNPL agreements have the same protections. There are some important exceptions:

  • Merchant own credit – if the business selling you the goods or services is also the one providing the credit, the new BNPL rules do not apply. For example, if a retailer runs its own in-house instalment scheme rather than using a separate BNPL provider, this may remain outside the new regulation.
  • Older BNPL agreements – agreements taken out before 15 July 2026 remains unregulated. The new protections do not apply retrospectively.
  • Agreements that do not meet the definition of Deferred Payment Credit – BNPL is a broad term, and not everything marketed as BNPL do fall under the new rules.

If you’re not sure whether your agreement is covered, check whether the lender is FCA-authorised or listed as having temporary permission. You can also ask the provider directly what protections apply.

How to complain and get your money back

1. Contact your BNPL lender first

If something goes wrong – for example, goods did not arrive, were faulty, were not as described or you have been charged incorrectly – your first step should be to contact your BNPL lender directly.

Explain clearly what the problem is and what you want them to do about it, such as a refund, repair or replacement. It is best to do this in writing, such as by email or through the provider’s complaints process, so you have a record.

Keep copies of everything you send and receive, including order confirmations, repayment schedules, screenshots and messages from the retailer.

2. Ask whether Section 75 applies

You can make a Section 75 claim against your BNPL lender if all of the following apply:

  • Your agreement was taken out on or after 15 July 2026
  • Your agreement is covered by the new rules (see above)
  • Your purchase cost more than £100 and up to £30,000

If these conditions are met, Section 75 of the Consumer Credit Act makes the lender jointly responsible with the retailer if something goes wrong – the same type of protection you get when paying directly by credit card. This could help if the retailer refuses to help, has gone bust or is not responding.

If any of these conditions are not met, Section 75 does not apply to your purchase.

Read our full guide to Section 75 and chargeback.

3. Escalate to the Financial Ombudsman Service

For covered BNPL agreements, you can take an unresolved complaint to the Financial Ombudsman Service.

You can usually go to the Ombudsman if the lender has sent you a final response and you’re unhappy with it, or if the lender has not resolved your complaint within eight weeks.

The Ombudsman can tell the lender to:

  • Refund your money
  • Pay compensation for trouble and inconvenience
  • Cover costs you have incurred because of the problem

If your BNPL agreement was taken out before 15 July 2026 and was not already regulated, you may not be able to complain to the Financial Ombudsman Service about that agreement.

Tips for using Buy Now Pay Later responsibly

  • Remember it is borrowing. BNPL is debt, even when it is interest-free. Only use it if you are confident you can afford the repayments alongside rent, bills, food and other commitments.
  • Keep track of what you owe. Several small BNPL purchases can quickly become hard to manage. Use your provider’s app, calendar reminders or banking tools to track payment dates and amounts.
  • Avoid using BNPL for essentials if you are already struggling. If you need credit to cover food, bills or other basics, free debt advice may be a better first step than taking on more borrowing.
  • Check the terms before you agree. Look at repayment dates, late fees, charges, missed payment rules and whether the agreement could affect your credit file.
  • Set up reminders or automatic payments. This can reduce the risk of missing a payment. Be careful about paying BNPL with another form of credit, as this can move the debt rather than solve it.
  • Return items quickly if you change your mind. If you are using BNPL to try before you buy, check the retailer’s returns deadline and make sure the BNPL provider has updated your repayment plan after any return.

Frequently Asked Questions about Buy Now Pay Later

Does Section 75 apply to all BNPL purchases?

No. Section 75 does not apply to every BNPL purchase.

For covered BNPL agreements taken out from 15 July 2026, Section 75 may apply if the purchase cost more than £100 and up to £30,000 and the legal conditions are met.

For purchases under £100, or where Section 75 does not apply, you may be able to use chargeback through your card provider if you paid by debit or credit card.

Read our guide to chargeback and Section 75 for more information.

What if I’m struggling to make repayments?

Contact your BNPL provider as soon as possible – ideally before you miss a payment.

From 15 July 2026, lenders offering covered BNPL agreements need to support customers in financial difficulty. This could include giving you more time to repay, agreeing a more manageable repayment plan or directing you to free debt advice.

Do not ignore missed payments. They can lead to fees, debt collection activity and damage to your credit score.

Will BNPL affect my credit score?

It can.

Some BNPL lenders report information to credit reference agencies. Missed payments can damage your credit score and may make it harder to borrow in future.

Even if a BNPL purchase does not appear on your credit file, you may still be asked about BNPL borrowing when applying for other types of credit, such as a loan, mortgage or credit card. 

From 15 July 2026, lenders offering covered BNPL agreements need to be FCA-authorised or have temporary permission.

You can check a firm using the FCA Firm Checker:
fca.org.uk/consumers/fca-firm-checker

Do the new rules apply to BNPL agreements I already have?

No. The new protections do not apply retrospectively.

If you took out an unregulated BNPL agreement before 15 July 2026, it remains unregulated. The new rules apply to covered agreements taken out from 15 July 2026 onwards.

Get free consumer advice

If you’re struggling with Buy Now Pay Later debt or need help understanding your rights, free advice is available:

  • Citizens Advice (England and Wales): 0808 223 1133 or visit citizensadvice.org.uk
  • Consumer Advice Scotland: 0808 164 6000 or visit consumeradvice.scot
  • Consumerline (Northern Ireland): 0300 123 6262 or visit nidirect.gov.uk

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Consumer Voice helps people get back money they may be owed when companies get it wrong. We explain your rights clearly, so you can understand whether you may be owed compensation, whether you can join a claim, and what steps to take next.

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