This article is for general information only. It is not financial advice and does not recommend a specific lender or product.

Buy now, pay later is now 57 days away from coming under FCA regulation. The week of 19 May brought a significant policy development that moves the wider credit reform framework forward.

What changed this week

The Treasury published its policy statement on reform of the Consumer Credit Act 1974 (CCA). The FCA responded publicly, welcoming the direction of travel.

Key points from the FCA's statement:

  • The CCA reform is described as "an important step towards a more flexible regime" that supports competition and innovation while maintaining consumer protection.
  • The proposed framework places greater emphasis on FCA rules rather than the existing statute, giving the regulator more flexibility to update requirements over time.
  • The FCA confirmed its support for the approach, noting that the current CCA is outdated in places and does not reflect modern credit products, including BNPL.

The CCA reform is a separate but related process to BNPL regulation. The two are connected because bringing BNPL under the FCA's remit requires the legal framework to accommodate it cleanly.

Why it matters

The Treasury's statement signals that the government is pressing ahead with the broader credit regulation overhaul. For BNPL shoppers, the practical effect is that formal FCA oversight, due on 15 July 2026, is still on track.

That means BNPL providers will be required to carry out affordability checks, give clearer information at the point of sale, and provide formal complaint routes. Consumers will also gain access to the Financial Ombudsman Service.

At the time of writing, no announcement has delayed or altered the 15 July 2026 date.

Who may be affected

  • Regular BNPL users who spread purchases across services such as instalment plans at online checkouts. From July, those products should come with stronger consumer protections.
  • People already in repayment difficulty with BNPL. The new rules will not resolve existing arrears, but formal complaint and redress routes should become available.
  • First-time BNPL users considering using a plan before the rules come in. It may be worth checking how repayments fit alongside other outgoings before committing.

If you are already struggling with BNPL repayments, free debt help is available now. You do not need to wait for July:

  • StepChange: 0800 138 1111
  • National Debtline: 0808 808 4000
  • MoneyHelper: 0800 138 7777

What to read next

Our guide to buy now, pay later covers how these products work, what the new rules are expected to change, and what to check before using one.

Sources

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