Consumers urged to still take care as new BNPL safeguards take effect

^{14 July 2026}

StepChange Debt Charity has welcomed the long-awaited Buy Now, Pay Later (BNPL) regulation coming into force on Wednesday, which will mean all BNPL products come under FCA regulation and include consumer protections in line with borrowing such as credit cards and personal loans.

The charity has laid out what the changes will mean for shoppers using BNPL going forward.

• Affordability checks – BNPL lenders will be required to carry out checks to make sure the BNPL loans will be affordable to borrowers, much like someone would have an affordability check on a credit card before being approved.
• Clearer information when making purchases – customers will be given clearer information when taking out a BNPL loan, including details about the agreement, and what could happen if payments are missed, making it easier to recognise as a form of credit.
• Access to complaints – If something goes wrong, customers can complain to the BNPL provider, but if they aren’t satisfied with the response they can then go to the Financial Ombudsman Service (FOS), which is free and impartial.
• Support for customers in financial difficulty – BNPL lenders will be required to proactively identify and support customers in difficulty, and provide information on debt advice and what support customers can get if they’re struggling to repay.

Responding to the new regulation, Vikki Brownridge, CEO at StepChange Debt Charity, said:

“StepChange, alongside other consumer groups, have been sounding the alarm about unregulated BNPL for more than five years. There’s no doubt that BNPL can be a useful form of credit - especially as it’s usually short-term and interest-free – to spread the cost of a bulky expense. However, as with any form of credit, regulation is vital to protect customers if something goes wrong, and ensure people aren’t being offered credit where it’s not affordable – something which will trigger debt problems, as we see all too often.

“Consumers can go on using BNPL in the same way as before, but it’s important to be aware of the new protections. If you are finding yourself struggling to keep up with payments, rather than taking on more credit or BNPL agreements, we would always advise seeking free and impartial debt advice to help get back on track.”

StepChange has shared its top tips for people using BNPL to prevent the risk of debt problems:

1. Pause and take stock: Before you buy to consider whether you’d buy it if it wasn’t available on credit.
2. Keep a record: BNPL can often be available for small purchases, and it’s possible to have multiple BNPL loans across different retailers. Keep a note of your payments and the terms of each loan agreement to make sure they fit within your budget, you can repay on time, and it won’t cause you to have to cut back on essentials.
3. Be confident about repayments: Life can be unpredictable, and many StepChange clients who struggle with credit do so because of unexpected events. If you can't be certain your income will cover the repayment, these products could end up causing more problems than they solve.
4. Get support: If you are struggling to repay a BNPL loan, or any other type of debt, free and impartial debt advice is available from charities like StepChange.