Welcome to Debt Matters. Today’s story matters for consumer credit in the UK. The Financial Conduct Authority has published its final rules for Deferred Payment Credit, better known as Buy Now, Pay Later. These changes will bring the sector into FCA regulation from 15 July 2026.

This matters because Buy Now, Pay Later has grown rapidly. The FCA says the market increased from £0.06bn in 2017 to more than £13bn in 2024, and 20% of UK consumers, or 10.9 million adults, used these products in the 12 months to May 2024. The regulator also says borrowers using these products are more likely to be in financial difficulty than the wider population.

So, what is changing?

• Creditworthiness checks Lenders will have to carry out proportionate creditworthiness assessments before each agreement is taken out. Importantly, the FC ...