The UK government has introduced new rules to protect consumers who use “buy now, pay later” loans, ensuring they don’t fall into unaffordable debt. While these changes won’t take effect until 2026, shoppers will benefit from credit card-style protection for their purchases and affordability checks for loans. This move comes after concerns grew around the ease with which borrowers could accumulate debts through BNPL schemes. The government aims to bring these companies under stricter regulation by applying the Consumer Credit Act, ensuring transparent loan agreements and safeguarding purchases under section 75. Campaigners like Martin Lewis and Stella Creasy have welcomed these measures but urge caution until they are implemented. With the holiday season approaching, the need for swift action to protect consumers is emphasized. The economic secretary to the Treasury, Tulip Siddiq, highlights the importance of balancing consumer protection with industry innovation. Overall, these new safeguards aim to provide shoppers with essential protection while allowing the sector to evolve responsibly.
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Buy now, pay later rules in UK to protect shoppers by 2026
