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Buy Now Pay Later: Faulty Item or No Refund
Buy now pay later agreements taken out from 15 July 2026 are regulated by the FCA, and Section 75 applies to regulated buy now pay later. That means if something you bought is faulty or not delivered and the shop will not put it right, you may be able to claim from the lender too. Keep paying while you dispute it, and tell the lender.
At a Glance
Your Rights
What the rules say, with a link to the official source for each.
Your Rights
It Is Now Regulated
The FCA has regulated 'deferred payment credit', often called buy now pay later, since 15 July 2026. It is interest-free credit repayable in 12 or fewer instalments over 12 months or less, and it is regulated when the lender and the seller are different businesses. source
Older Agreements
Agreements taken out before 15 July 2026 remain unregulated, and buy now pay later offered by the same business that sells you the goods is not regulated. source
Section 75
Section 75 of the Consumer Credit Act is available for regulated buy now pay later, giving the same protection as paying by credit card, so you can claim from the lender if something is faulty or not delivered. source
Complaining
Missed Payments
If you miss a payment, the firm must contact you and explain what it means. If you are struggling, contact your lender early, as it must provide support under the rules. source
If You Are Unhappy
If you are unhappy with how a lender treated you, ask it to put things right first. If you are still unhappy, you can complain to the Financial Ombudsman Service. source
Time Limits to Know
Miss a deadline and you can lose a right. Check the dates on your own paperwork.
- 15 Jul 2026Buy now pay later regulated by the FCAFor agreements taken out from 15 July 2026
- 8 weeksFinancial Ombudsman complaintsLender has 8 weeks for most complaints, then you have 6 months from the final response
Steps to Take
Step 1 of 5
Complain to the shop first about the faulty or missing item. Our free letter templates can write it for you.
Step 2 of 5
Check when you took out the buy now pay later agreement: from 15 July 2026 it is regulated.
Step 3 of 5
If the shop will not put it right, contact the lender, explain the problem and ask about Section 75.
Step 4 of 5
Ask the lender to pause collection while it looks at your claim, and do not just stop paying.
Step 5 of 5
If the lender says no, or does not reply within 8 weeks, go to the Financial Ombudsman Service.
(Tap the numbers to reveal steps)
Where to Go If It Is Not Put Right
Your options, in order, and when each one applies.
Your Lender's Complaints Team
Always start here, in writing, and ask it to put things right.
Financial Ombudsman Service
After 8 weeks with no final response, or if you are unhappy with it. Refer within 6 months of the final response.
Good to Know
Small things that make your complaint stronger.
Agreements taken out before 15 July 2026, and BNPL offered by the shop itself, are not regulated, so Section 75 may not apply.
Want Help?
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Lead reviewer
Luke Marley
Founder and Lead Reviewer
Luke founded CPUK in 2026 after seeing how hard it is for ordinary people to get problems with companies put right. He oversees our guides and checks them against official sources.
Research by Katie Burt, Co-founder and Operations Lead (17 years in the care sector, including managing services for vulnerable adults), and the CPUK Research Team. Researched with AI-assisted research tools, then checked and corrected by our team.
Last checked: 12 October 2026. We are not paid by the companies we write about. Adverts never affect our guidance. Read our editorial policy.
Sources and official links
- fca.org.uk/consumers/buy-now-pay-later Checked 12 October 2026
- financial-ombudsman.org.uk/consumers/complaints-can-help/expect/time-limits Checked 12 October 2026