Buy Now, Pay Later is Changing

Buy Now, Pay Later services are about to change in the UK. From the 15th of July, buy now, pay later services like Klarna and Clearpay will be subject to regulation by the Financial Conduct Authority. Despite how casual it feels, pay debt is still debt. But under the new rules, lenders will have to go through affordability checks to see if that kind of product is actually suitable for the customer, whether they can actually pay it back. They will also have to give you more visibility and communication agreeing about what you're agreeing to, including how to repay, missed payments and fees that apply. Probably the most interesting part of this change is any purchases made between the value of £100 and £30,000 will fall under section 75 protection. That means the lender is jointly responsible for the product if it's faulty, never arrives or even if the retailer goes bust. But there's one small catch. This only applies to purchases made with buy now, pay later services after the 15th of July 2026. They don't automatically protect any purchases made before that date. So, my honest take is that I've never found it that different. I've used buy now, pay later services myself but I'm incredibly financially responsible. The key problem is the fact it's split into such small payments makes it feel more affordable when it may not be. And in my opinion, it definitely preys on the impulses that that tend to overspend or who may not understand credit. But you know what? I'm really happy about this change. Let me know what you think about it in the comments below.