Is buy now, pay later regulated in the UK?

Yes, from 15 July 2026. Interest-free plans such as pay in 3 used to be exempt. Now providers need to be authorised by the FCA, must check you can afford what you borrow and must treat you fairly if you struggle. Plans that charge interest were already regulated.

Does buy now, pay later affect my credit score?

It can. Many providers share your plans and payments with the credit reference agencies, so paying on time can help and missed payments can hurt. Some check your file with a soft search and others with a hard search, so check before you apply.

What happens if I miss a buy now, pay later payment?

You may be charged a late fee and stopped from using the service until you catch up. Missed payments can be reported to the credit reference agencies, and if you keep missing them the debt can be passed to a debt collector. Contact the provider early: it must treat you fairly if you’re struggling.

Can I complain to the Financial Ombudsman about buy now, pay later?

For plans the FCA regulates, yes. Complain to the provider first. If you’re unhappy with its answer, or it hasn’t replied within eight weeks, you can take the complaint to the Financial Ombudsman Service, which is free.

Do mortgage lenders look at buy now, pay later?

Yes. They can see your plans on your credit file and in your bank statements, and count the payments as part of what you spend each month, which can lower how much they’ll lend.

Buy now, pay later in the UK: costs, credit and the rules

How it works

At the checkout you choose BNPL, and the provider pays the shop. You pay the provider back, usually in one of these ways:

Pay in 3: a third now and the rest over the next two months. This is common in the UK, and there’s usually no interest.
Pay in 4: a quarter now, then 3 payments every 2 weeks, usually with no interest.
Pay monthly: longer plans over months or years. These often charge interest, sometimes as much as a credit card, and have always been regulated like other loans.

A £200 purchase, paid in 4 No interest if every payment is on time.

1 £50 Today
2 £50 In 2 weeks
3 £50 In 4 weeks
4 £50 In 6 weeks

Each payment is taken from your card or bank account automatically. If one fails, a late fee can be added.

What changed on 15 July 2026

Until then, interest-free BNPL was exempt from the rules for other credit. Now the Financial Conduct Authority (FCA) regulates it, for plans taken out from that date. Providers must:

be authorised by the FCA
check you can afford the plan before you sign up
explain the costs, your rights and what happens if you miss a payment before you agree
treat you fairly if you struggle, for example by agreeing a pause or lower payments

If something goes wrong, complain to the provider first. If you’re not happy with the answer, or it takes more than eight weeks, you can go to the Financial Ombudsman Service for free.

What it costs

On a £200 purchase split into 4, you pay £50 now and £50 every 2 weeks. If a payment fails, the provider can charge a late fee, and may stop you using it until you’ve caught up. Several plans at once are easy to lose track of: £50 here and £40 there can take a big share of your pay.

Returning something? Tell the provider straight away, and ask whether you need to keep paying while the refund goes through. Don’t just stop paying: a missed payment can still be reported.

Your credit file

Many providers check your credit file when you sign up, or before raising your limit. Some use a soft search, which other lenders can’t see; others use a hard search.
Many share your plans and payments with Experian, Equifax and TransUnion, the UK’s credit reference agencies. Paying on time can help; missed payments can show for six years.
If you keep missing payments, the debt can be passed to a debt collector.
Mortgage lenders look at BNPL plans on your credit file and bank statements when you apply.

See credit scores explained.

Use it safely

Count it in your budget as soon as you buy, not when the payments come out.
Stick to one provider, so you can see everything you owe in one place.
Pay from a debit card with money in the account, not a credit card: borrowing to repay borrowing gets expensive fast.
Don’t use it for everyday costs. If you need it for food or bills, talk to a free debt adviser such as StepChange, National Debtline or Citizens Advice: see help with debt.