FCA To Regulate BNPL Services Under Consumer Credit Framework From July 2026

The Financial Conduct Authority (FCA) said BNPL agreements will fall within the scope of the Consumer Duty following a government directive to expand oversight of the sector. Firms offering BNPL products will be required to obtain authorisation and conduct affordability checks before approving credit.

Consumers will receive information on repayment terms, due dates, payment amounts, and the impact of missed payments. Lenders must provide support to customers facing financial hardship and refer them to free debt advice where appropriate. Consumers will also be able to approach the Financial Ombudsman Service for complaints related to BNPL providers. FCA Deputy Chief Executive Sarah Pritchard said the sector provides credit to many people and that lending should not occur where repayment is not possible. She said the regulator is introducing protections for 11 million users.