Don’t get caught out by new Buy Now Pay Later rules

Buy Now Pay Later (BNPL) loans have been regulated in the UK since July, bringing stricter checks on whether shoppers can afford each purchase. The rules give customers more routes to refunds and independent complaint decisions, but a failed check can block a purchase or reduce access to borrowing, including during the expensive festive season.

The checks vary partly according to how much is borrowed. Former Citizens Advice debt adviser Sara Williams recommends slowing down purchases, avoiding unnecessary spending that requires a high credit limit, cancelling subscriptions that strain finances, and contacting debt charities if BNPL is being used for essentials. People struggling with repayments can use MoneyHelper to find free debt advice and tools to plan payments and check entitlement to benefits and grants.