We will start regulating Deferred Payment Credit, often known as Buy Now Pay Later, on 15 July 2026. Find out what will be changing.
When you shop online or in store, some businesses offer customers a Buy Now Pay Later option for their items. There are currently 2 types of Buy Now Pay Later; one which we already regulate, and another known as Deferred Payment Credit (DPC).
DPC is an interest-free form of credit, repayable in 12 or fewer instalments, over 12 months or less.
Right now, DPC agreements aren’t regulated, which means lenders don’t need to be authorised by us or follow our rules.
But from 15 July 2026, this will change. Lenders will need to be authorised by us or be part of our temporary permissions regime. This means you’ll get greater protection when using DPC. For example, if you have a complaint about a DPC agreement entered into after 15 July, you’ll be able to contact the Financial Ombudsman Service if you're not happy with the response you get from the lender.
From July 2026, you’ll be able to check whether a firm can offer DPC on the FCA Firm Checker.
You can read more about Buy Now Pay Later on MoneyHelper.
What's going to be regulated
DPC agreements will be regulated if the lender and the supplier of goods or services are different businesses.
For example, if you buy clothing from one store, but the provider of the credit is a different business.
What's not going to be regulated
If you buy something from a business and use DPC that's provided by that same business, it will not be regulated.
Any DPC agreement you take out before 15 July 2026 will also remain unregulated.
The new protections won’t apply to these agreements.
Register of lenders with temporary permission
The following lenders are registered for the temporary permission regime. This means they aren’t authorised by us yet, but can continue providing DPC agreements after 15 July 2026:
- Access Fertility (Access Fertility Ltd)
- Clearpay (Clearpay Finance Ltd)
- Manchester Credit Union
- Medicred (Medicred Ltd)
- The Money Co-op (Metro Moneywise Credit Union)
- PayItMonthly (PayItMonthly Ltd)
- PLIM (PLIM Ltd)
- PollenPay (PollenPay UK Ltd)
- Zero Down Lease (Leasehold Finance Ltd)
- Zeropa (Zeropa Holdings Ltd)
If a lender is registered for the temporary permission regime, it has to follow our rules for DPC agreements entered into from 15 July.
If you have a complaint about a DPC agreement taken out after 15 July, you’ll be able to contact the Financial Ombudsman if you’re not happy with the response you get from the lender.
Lenders that are already authorised by us can also continue providing DPC agreements after 15 July 2026. You can use the Firm Checker to find out if your lender is already authorised by us and what permissions it has.
What's changing
We want our new rules for DPC to reduce the risk of harm to individuals who choose to use it. Lenders will need to follow these rules from 15 July 2026.
Checking you can afford to repay
We want to make sure that firms lend responsibly and affordably. So, lenders will need to check whether you can afford to repay before you take out an agreement.
Information about your DPC agreements
We want you to be able to decide whether DPC is right for you. So, lenders will need to give you information before you take out a DPC agreement.
This includes:
- The amount you'll borrow.
- When you'll need to make repayments.
- How much your repayments will be.
- How much any late fee will be
- The rights and protections you’ll have.
If you're struggling to keep up with payments
If you miss a repayment, firms will need to contact you to let you know and explain what this means.
If you're struggling to make repayments, you should get in touch with your lender. Under our rules, firms will need to provide you with support.
If you're struggling with money, you can get guidance on dealing with debt from MoneyHelper. You can also use the Debt Advice Locator tool to find free services in your area.
If you need to complain
If you're unhappy with the way your DPC lender has treated you, you'll have the right to complain.
In the first instance, you should ask your lender to put things right. But if you're unhappy with their response, you'll be able to make a complaint to the Financial Ombudsman.
Refunds
From 15 July 2026, if something goes wrong with what you've bought using DPC, you may be able to get a refund from the lender.
This is because Section 75 of the Consumer Credit Act will be available. This is the same protection you’d have if you used a credit card to pay.
