UK BNPL rules take effect July 2026

New UK buy now, pay later rules take effect with added protections

8 reported

New regulations for buy now, pay later (BNPL) credit products took effect in the UK on Wednesday, giving shoppers additional rights and protections. The government stated it was delivering on its commitment to end the BNPL "wild west," and the Treasury said the new regime would deliver a "fairer deal" for shoppers. However, some campaigners cautioned that consumers should still think carefully before using BNPL. The sector's value jumped from £60m in 2017 to more than £13bn in 2024, according to the FCA, and the use of this credit rose from 14% to 25% of UK adults in only a year, per UK Finance data. The new rules require BNPL lenders to carry out affordability checks before each loan, provide clear upfront information, and direct those in financial difficulty to debt advice before a debt collector. BNPL users will also benefit from section 75 protection on purchases above £100, and can complain to the Financial Ombudsman Service.

What’s reported

New BNPL rules took effect in the UK on Wednesday, July 15, 2026.

The government said it was ending the BNPL "wild west."

The sector's value rose from £60m in 2017 to over £13bn in 2024, per the FCA.

Use of BNPL among UK adults rose from 14% to 25% in one year, per UK Finance.

Lenders must now carry out affordability checks before each loan.

BNPL users get section 75 protection on purchases above £100.

Complaints can be made to the Financial Ombudsman Service.

Fair4All Finance claimed up to 30% of current BNPL users could be rejected under new checks, and nearly half of those likely turned down have never missed a payment.