# Buy-now-pay-later regulation comes into force

> Regulation · 1 May 2026

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## Summary

BNPL providers are now FCA-authorised, with affordability checks, Section 75 protection on larger purchases, and Ombudsman complaints rights.

Buy-now-pay-later (BNPL) products from firms such as Klarna, Clearpay and PayPal moved into the FCA's regulatory perimeter on 1 May. Providers must now be authorised, complete affordability checks, give clearer pre-contract information, and follow the Consumer Duty.

Practical changes for consumers: BNPL agreements covering individual purchases over £100 now carry Section 75 joint liability protection through the credit provider, and disputes that cannot be resolved with the provider can now be escalated free of charge to the Financial Ombudsman Service.

The number of UK adults using BNPL is estimated at around 14 million. Citizens Advice has long warned that BNPL is over-represented in casework involving multiple-debt problems, particularly among under-30s.

Used carefully, interest-free BNPL can spread the cost of a planned purchase without cost. Missed payments still attract fees from most providers and, under the new regime, will be reported to credit reference agencies.

## Related topics

- [/credit/](https://moneyguide.org.uk/credit/)
- [/debt-help/](https://moneyguide.org.uk/debt-help/)

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Money Guide is not a financial adviser and does not currently earn commission on credit cards. This guide is educational information only — always check the issuer's own terms, eligibility checkers and fees before applying. 18+, subject to status. Credit is a commitment: only borrow what you can repay in full each month, because interest charges erase every reward on this page.