New regulations governing Buy Now, Pay Later (BNPL) services are set to come into force across the UK from Wednesday, 15 July 2026. The long-awaited changes aim to provide consumers with significantly stronger protections when using popular deferred payment options offered by providers such as Klarna and Clearpay. Consumer champion Which? has welcomed the new rules, highlighting the benefits for shoppers.
A key enhancement for consumers is the ability to refer complaints to the Financial Ombudsman Service (FOS) if issues arise that cannot be resolved directly with the BNPL provider. This marks a crucial step in bringing BNPL services under a similar regulatory umbrella to other financial products, offering a vital recourse for individuals who feel they have been treated unfairly or encountered problems with their agreements.
Under the new framework, BNPL firms will also be required to implement more robust affordability checks before approving transactions. This measure is designed to help prevent consumers from taking on debt they cannot comfortably repay, addressing concerns that the ease of use of BNPL services sometimes led to individuals overstretching their finances. Furthermore, shoppers can expect to see clearer information presented at the checkout stage, ensuring they fully understand the terms, conditions, and potential consequences of using BNPL.
Rocio Concha, Director of Policy and Advocacy at Which?, commented on the forthcoming changes, stating, “Which? campaigned for regulation of Buy Now Pay Later (BNPL) providers such as Klarna and Clearpay, so it's great news that this is finally happening and means users of these services will benefit from stronger safeguards.” She further emphasised that these changes should make decisions easier for consumers by providing clearer information and stronger consumer rights.
While the new regulations offer enhanced security, Which? continues to advise shoppers to exercise caution and thoroughly consider their financial situation before opting for BNPL. Consumers should assess whether they can comfortably meet the repayment schedule and fully understand the implications of missing payments. The introduction of these rules represents a significant shift in the landscape of consumer credit, aiming to balance the convenience of BNPL with essential consumer safeguards.