Buy now, pay later (BNPL), such as Klarna, Clearpay and PayPal Pay in 3, lets you split a purchase into instalments, usually interest-free. The law calls it “deferred payment credit”. Until 15 July 2026 most of it wasn’t regulated at all.
What changed on 15 July 2026
- Affordability checks. BNPL providers now have to follow the FCA’s affordability rules (CONC 5.2A) and take proportionate steps to check you can afford what you’re agreeing to, even for small amounts.
- Clear information before you agree, and help if you’re struggling, including pointing you to free debt advice.
- The Financial Ombudsman can look at complaints about BNPL agreements taken out on or after 15 July 2026, once you’ve complained to the provider first.
Agreements taken out before 15 July 2026 stay unregulated. The Financial Ombudsman can’t look at an unaffordable lending complaint about them. You can still complain to the provider directly.
Struggling with BNPL and other borrowing?
Lots of people who fell behind with buy now, pay later were also using credit cards, catalogues, payday loans or an overdraft. Those are regulated, and if a lender gave you more credit than you could afford, you may be able to get the interest and charges back. Some catalogue accounts also had their own “buy now, pay later” offers that rolled into interest, which can be complained about as part of a catalogue credit claim.
If you’re worried about debt right now, free, confidential help is available from MoneyHelper, StepChange and National Debtline.
Questions people ask
Can I complain about Klarna or Clearpay?
Yes, you can complain to the provider. For agreements taken out on or after 15 July 2026, you can take it to the Financial Ombudsman if you’re unhappy with their answer. For earlier agreements, the Ombudsman can’t usually help.
Does buy now, pay later affect my credit score?
It can. Some providers report to credit reference agencies, and missed payments can be recorded.
Is a catalogue “buy now, pay later” deal the same thing?
Not always. Catalogue accounts such as Very and Littlewoods are regulated running credit, and their buy now, pay later offers are part of that account, so they can be complained about. See catalogue credit claims.