- New regulations for Buy Now, Pay Later (BNPL) services, such as Klarna and Clearpay, will come into force from 15 July 2026, as announced by the Financial Conduct Authority (FCA).
- From this date, borrowers will benefit from stronger protections, including mandatory affordability checks by firms, support for customers in financial difficulty, and clear information about agreements.
- Customers will also gain the right to escalate complaints to the Financial Ombudsman Service if issues arise, and BNPL lenders will need to be authorised by the FCA to operate.
- Currently, the BNPL sector is largely unregulated, offering limited protection to users despite the government first announcing regulation plans in January 2021.
- Debt charity StepChange welcomed the long-awaited regulations, advising users to always check affordability and seek free debt advice if struggling with repayments.
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