BNPL regulation a landmark win for consumer protection, says StepChange

^{15 July 2026}

StepChange Debt Charity has welcomed that the Buy Now, Pay Later (BNPL) sector will come under regulation of the Financial Conduct Authority (FCA) from today, with stronger protections in place for consumers, much like the rest of the traditional credit sector.

New YouGov polling commissioned by StepChange reveals the increasing popularity of BNPL products, but raises the concern that many are using it to cover essentials costs. In July 2026, 4% of UK adults said they have used BNPL to pay for essentials in the last three months, equivalent to around 2.2 million people. This is broadly on a par with people using loans from family or friends (4%) and overdrafts (5%).

The charity says the new rules will help to ensure customers don’t fall into difficulties with debt when using BNPL products but has highlighted a couple of potential areas where the regulator can strengthen its approach in future.

Peter Tutton, Director of Policy, Research and Public Affairs at StepChange, said:

“It’s a landmark moment to see the Buy Now, Pay Later (BNPL) sector regulated after years of campaigning by StepChange and other consumer groups. BNPL can be a helpful way for consumers to spread the cost of purchases, particularly as it is typically interest-free and designed for short-term borrowing. However, our experience shows that people using it are more likely to be facing debt problems and can be at greater risk of falling behind on payments and incurring additional charges."

“Consumers will still be able to use BNPL much as they do today, but with stronger protections. Lenders will need to carry out better affordability checks, provide clearer information, and offer support to customers in financial difficulty – including signposting to debt advice. Customers will also gain access to the Financial Ombudsman Service.”

“One area where we would welcome further safeguards is around the ability for people to take out multiple BNPL agreements simultaneously. On occasions we have supported clients with dozens of separate BNPL debts, which highlights weaknesses in the current system that can allow debt to build up across several providers without sufficient checks in place.”

“We'd also like the FCA to do more to tackle low-friction borrowing and the exploitation of behavioural biases in product design. While mandating key pre-contractual information is a positive step, it does not give consumers sufficient opportunity to reflect before borrowing, particularly those experiencing financial difficulty or mental health challenges. We've called on the FCA to use its Consumer Duty rules to set clearer expectations for firms.”

Notes to editors

• All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,142 adults. Fieldwork was undertaken between 9th - 10th July 2026. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+). Population estimates have been calculated by StepChange.
• In the polling by “essential household bills”, we mean items needed to make ends meet such as housing, other household bills (like utilities, council tax and credit repayments), groceries and transport.