IMMEDIATE RELEASE

Money and Mental Health response to FCA Buy Now Pay Later proposals

18 July 2025

Today (18 July) the Financial Conduction Authority (FCA) has announced plans to ensure that people using Buy now pay later (BNPL) will have the same protections which are in place for other types of lending

The FCA proposals include requiring lenders to check that people can afford to repay BNPL loans and to offer support if they get into financial difficulty.

Commenting on the proposals, Helen Undy, Chief Executive of the Money and Mental Health Policy Institute, said:

“This step forward is long overdue and very welcome. As things stand, it’s extremely easy for people to take out BNPL credit, but the information about what happens if you miss payments is often buried in the small print. That leaves people at risk of racking up debts they can’t afford to pay back, and poses particular risks for people with mental health problems, who can find it challenging to control spending.

“It is very welcome that BNPL providers will have to check that people can afford to repay BNPL loans and to offer support if they get into financial difficulty — holding them to similar standards to other lenders. At a time when consumer protection sometimes feels under threat, it’s a positive step.”

ENDS

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