BNPL products allow people to spread the cost of purchases over time, but borrowers currently do not have access to some protections provided by other consumer credit products.
New rules to protect shoppers from spiralling into debt with Buy Now Pay Later products will come into force in 2026. The measures mean companies offering
products have become increasingly popular in recent years as they allow shoppers to spread the cost of purchases over time. Campaigners like Money Saving Expert Martin Lewis have long been calling for greater regulation over concerns people are racking up too much debt. Mr Lewis welcomed the announcement, saying Chancellor Rachel Reeves personally informed him of the news over the phone.
can be useful, it's being sold 'as a lifestyle choice, not a debt, and pushed for instinct buys or even takeaways. Too many are in trouble with multiple lenders under the scrutiny of the Financial Conduct Authority and the Consumer Credit Act. This will give consumers the ability to raise complaints with the Financial Ombudsman and claim refunds from the lenders if something goes wrong with a purchase. A treasury source said the 2026 date was to give the FCA time to finalise its rules and companies the time to prepare for the changes.
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