- Regulation
- FCA-regulated for agreements made from 15 July 2026
- Earlier agreements
- Agreements before that date stay unregulated
- Typical cost
- Usually interest-free if paid on time
- First step
- Contact the provider before you miss a payment
On this page
What is buy now pay later?
Buy now pay later lets you get something now and pay for it later, either in one payment after a set number of days or in instalments, often without interest. Providers include Klarna, Clearpay, PayPal and Zilch. Each purchase is a separate agreement, so it is easy to lose track of how much you owe in total.
What changed on 15 July 2026?
From 15 July 2026, third-party BNPL became regulated credit, supervised by the Financial Conduct Authority. For agreements made from that date, providers must:
- be FCA-authorised, or covered by temporary permissions while their application is assessed;
- carry out proportionate affordability checks before lending;
- give clearer information, and treat customers in difficulty fairly;
- give you access to the Financial Ombudsman Service, and Section 75 protection on purchases between £100 and £30,000.
Agreements taken out before 15 July 2026 remain unregulated, so these protections may not apply to them.
Talk to a free adviser first
An adviser can look at your whole budget, deal with creditors for you and explain which option suits you. Get free debt advice.
What happens if you miss payments?
Terms differ between providers, but missed payments can lead to late fees, further reminders and restrictions on your account. Providers may report missed payments to credit reference agencies, and unpaid balances can be passed to a debt collector or sold on. A court claim is possible for unpaid balances, as with other debts.
What you can do
- Contact each provider early and ask about extending a due date or agreeing a payment plan.
- List every BNPL agreement, with amounts and due dates. Check old orders and several providers.
- Do not use another BNPL or credit card just to make payments.
- Pay priority bills first: rent or mortgage, council tax, energy, food and travel to work.
- If you cannot manage, BNPL debts can be included in a debt management plan, an IVA or a debt relief order.
- Breathing Space can pause creditor action for 60 days while you get advice.
For help with one provider, see our Klarna debt guide.
If you were lent too much
If an agreement made on or after 15 July 2026 was clearly unaffordable, complain to the provider first. If you are not happy with the response, or wait more than eight weeks, you can take it to the Financial Ombudsman Service. For earlier agreements you may not have the same route, so get advice.
Frequently asked questions
Does BNPL affect my credit score?
It can. Some providers report to credit reference agencies, and missed payments can harm your record. Rules and practice vary, so check with each provider.
Can I be taken to court over BNPL?
Yes, if a balance goes unpaid and the provider or a debt collector pursues it, although many cases are resolved by agreeing a plan first.
Should I pay BNPL before my bills?
No. Rent, mortgage, council tax, energy and similar priorities come first. BNPL balances are unsecured debts.
Can I include BNPL in a debt solution?
Yes. They are unsecured debts and can be included in a DMP, IVA, DRO or bankruptcy, depending on your situation.
Is BNPL really interest-free?
Usually when paid on time. Some products charge interest or fees, especially longer-term finance and late payments, so read the terms for each one.
This guide gives general information and is not personal advice. Rules and limits change, so check with a free adviser before acting. Last reviewed 11 November 2026.