Using Buy Now Pay Later? It's Changing
From 15 July, Buy Now, Pay Later (BNPL) providers will be regulated by the Financial Conduct Authority (FCA). These changes are designed to give customers greater protection and help make sure lenders assess whether borrowing is affordable.
That’s because new regulation is being introduced to give customers more protection and make sure Buy Now Pay Later providers carry out checks to make sure you can afford their products before offering them.
What could be different?
Depending on the company you use, you may notice changes such as:
- Buy Now Pay Later may no longer be available when you check out.
- You may be asked more questions about your income or spending.
- You may be asked for more information, and lenders may carry out checks to assess whether the borrowing is affordable for you before approving your application.More information explaining how the product works and clearer information about your rights if something goes wrong.
Remember, Buy Now, Pay Later is a form of credit. Missing payments could affect your finances and may lead to additional charges or other consequences, depending on your provider.
Why are the rules changing?
The aim is to make sure you have the information you need before taking out credit and that lenders are checking borrowing is affordable for you.
For many people, the application process may simply include a few extra questions or checks compared with before.
It's always good to know your options
Buy Now Pay Later is just one way to spread the cost of larger purchases.
Before you decide, it can help to compare what’s available, understand the total cost, check whether there are any late fees if you miss a payment and choose the option that works best for you.
Need help managing your money?If you’re finding it difficult to keep up with payments or you’re worried about debt, free and independent help is available from organisations such as StepChange, National Debtline and Citizens Advice.
If you’re worried about upcoming costs, our free MoneyToolkit can help you:
- Check you’re getting the income you’re entitled to.
- See where you could save money on household bills.
- Create a budget that works for you.
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