UK Will Start Regulating Buy-Now-Pay-Later Loans From 2026

Buy-now-pay-later providers will finally be regulated in the UK beginning next year, the Financial Conduct Authority said on Friday.

Lenders will need to be authorized by the regulator, though while they apply they can continue to trade under temporary permissions, the FCA said in a statement. Providers must carry out affordability checks and offer support to struggling borrowers, while customers will gain the right to take complaints to the Financial Ombudsman Service.

New rules governing the sector will come into force next July — subject to the regulator’s latest consultation, which is open until Sept. 26.

“We’re mainly relying on ...