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Debt and Buy Now Pay Later
Buy now pay later (deferred payment credit) has been regulated by the FCA since 15 July 2026, so lenders must check you can afford it, tell you the key terms, and support you if you miss a payment. If debts are getting on top of you, free debt advice is available and Breathing Space can pause creditor action for up to 60 days in England and Wales.
At a Glance
Your Rights
What the rules say, with a link to the official source for each.
Buy Now Pay Later
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
Affordability Checks
Lenders must check that you can afford to repay before you take out an agreement, and tell you before you agree the amount you will borrow, when and how much you will repay, the late fee, and your rights and protections. source
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
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
Checking a Lender
You can check a lender is authorised using the FCA Firm Checker. It should have permission to lend you money on an unsecured basis. source
Complaints
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
Breathing Space
What It Is
Breathing Space gives temporary protection from creditors in England and Wales while you get debt advice and make a plan. It lasts up to 60 days, or for the length of mental health crisis treatment plus 30 days. source
What It Stops
During Breathing Space, creditors cannot take enforcement action, contact you about the debts included, or add interest or charges. It does not wipe out your debts. source
How to Apply
You apply for Breathing Space through a debt adviser, who submits the application if appropriate. You can find a free adviser through MoneyHelper. If you are receiving mental health crisis treatment and cannot speak to an adviser, someone else can do so for you. source
Who Is Not Eligible
You are not eligible if you have a debt relief order, an individual voluntary arrangement, an interim order or are an undischarged bankrupt, or if you have used Breathing Space in the last 12 months (unless it was for a mental health crisis). source
Steps to Take
Step 1 of 7
List everything you owe: who, how much, the monthly payment, and any letters or default notices. Do not ignore letters.
Step 2 of 7
Check whether any buy now pay later is regulated: look at the date you agreed, whether the lender and seller are separate businesses, and whether you have the lender's information.
Step 3 of 7
Contact your lender early if you are struggling. Ask in writing what support is available, and keep a copy.
Step 4 of 7
Get free debt advice through MoneyHelper's Debt Advice Locator before you pay anyone.
Step 5 of 7
If you need time to sort things out, ask your debt adviser about Breathing Space, which can pause creditor action for up to 60 days.
Step 6 of 7
If something you bought on buy now pay later is faulty or not delivered, ask the retailer first, then the lender, and use Section 75 if the credit is regulated.
Step 7 of 7
If a lender treated you unfairly, complain to it first and then take it to the Financial Ombudsman Service.
(Tap the numbers to reveal steps)
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
- 60 daysBreathing SpaceUp to 60 days, or mental health crisis treatment plus 30 days
- 12 monthsUse Breathing Space againNot within 12 months, unless it was for a mental health crisis
- 8 weeksFinancial Ombudsman complaintsLender has 8 weeks for most complaints, then you have 6 months from the final response
Where to Go If It Is Not Put Right
Free routes to escalate, 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.
MoneyHelper Debt Advice
You are struggling with debt. Use the Debt Advice Locator to find free local advice.
Debt Adviser: Breathing Space Application
You need time to get advice and make a plan. A debt adviser applies for you.
Watch Out For
Common traps and scams to avoid.
Companies that charge a fee to 'write off' debts or 'clear' your credit file. Free debt advice is available through MoneyHelper.
Cold calls, texts or emails offering a quick loan or debt solution and asking for payment up front.
Buy now pay later offers that make it easy to spend more than you can repay. Check you could pay each instalment without missing other bills.
Ignoring letters or missed payment notices. Contact the lender early to get support.
Recent or changing rules: tap to read
Checked 8 October 2026 against the FCA's buy now pay later page and GOV.UK's Breathing Space page. The FCA page says regulation started on 15 July 2026 for deferred payment credit and does not explain how interest-charging buy now pay later is treated. Breathing Space applies in England and Wales; Scotland and Northern Ireland have different schemes, which were not checked. Time limits on old debts, debt collectors' conduct, county court judgments and other debt solutions were not covered. The Financial Ombudsman time limits are from its general page. Review again by January 2027.
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Sources and official links
- fca.org.uk/consumers/buy-now-pay-later Checked 8 October 2026
- gov.uk/options-for-dealing-with-your-debts/breathing-space Checked 8 October 2026
- financial-ombudsman.org.uk/consumers/complaints-can-help/expect/time-limits Checked 8 October 2026
- moneyhelper.org.uk/ Checked 8 October 2026