StepChange responds to introduction of new Buy Now, Pay Later legislation

^{19 May 2025}

After years of campaigning for action to protect consumers from the risks of unregulated Buy Now, Pay Later (BNPL) products, StepChange Debt Charity strongly welcomes today’s announcement that legislation will be introduced to Parliament, with new rules expected to take effect by 2026.

Reacting to the news, StepChange’s Chief Client Officer, Richard Lane, said:

"Regulation of the Buy Now, Pay Later sector is long overdue, with inconsistent affordability checks and a lack of rules around marketing leaving consumers vulnerable to debt problems while using this type of credit. For years now we’ve seen first-hand the impact of BNPL services operating unregulated – with people struggling with multiple BNPL debts across several retailers, and often it’s among those who are already in financial difficulty and using credit to make ends meet.

"As it’s generally interest-free, BNPL can be a useful and convenient way to manage chunky expenses, but it's crucial that consumers receive the same protections as they would with other forms of credit.

"With a clearer outline expected of what new rules around BNPL will involve, today’s announcement is welcome progress toward proper regulation of BNPL. It’s been a long road to get here, and we hope to see the government follow through on this commitment as quickly as possible."