Credit: Regulation
The question
To ask the Chancellor of the Exchequer, what the Government’s timetable is for bringing buy now, pay later products within the financial-services regulatory framework.
Answered by Rachel Blake
In July 2025, Parliament passed legislation to bring Buy-Now, Pay-Later (BNPL) products within the scope of Financial Conduct Authority regulation. The new regulatory regime came into force on 15 July 2026 and last month the FCA published its final rules for BNPL lending.
Under these rules, BNPL providers will be required to carry out affordability checks as well as provide consumers with clear and upfront information about costs and repayment obligations. Consumers will also benefit from stronger rights, including access to the Financial Ombudsman Service and protection under section 75 of the Consumer Credit Act, making it easier to obtain refunds where purchases go wrong. These new rules will ensure that BNPL products remain a useful payment option while protecting consumers from harm.
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