PS26/1: Regulation of Deferred Payment Credit (unregulated Buy Now Pay Later): Feedback to CP25/23 and final rules

The FCA finalizes rules bringing Deferred Payment Credit (DPC) into regulation effective 15 July 2026, requiring lenders to conduct creditworthiness assessments for all agreements, including those under £50. Firms must provide specific product information before agreements are entered into and adhere to existing conduct standards, dispute resolution, and regulatory reporting requirements. Entities lacking necessary permissions must register for the Temporary Permissions Regime by 15 May 2026, or face criminal penalties for entering new DPC agreements after the regulation date.

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Policy Statement
PS26/1
Regulation of Deferred Payment
Credit (unregulated Buy Now Pay
Later): Feedback to CP25/23 and final rules February 2026

This relates to
Consultation Paper 25/23 which is available on our website at www.fca.org.uk/publications Email:
cp25-23@fca.org.uk
Sign up for our news and publications alerts See all our latest press releases, consultations and speeches. All our publications are available to download from www.fca.org.uk. Request an alternative format Please complete this form if you require this content in an alternative format. Or call 0207 066 1000 This Policy Statement sets out our approach to the regulation of Deferred Payment Credit (DPC), which has been more commonly known as Buy Now Pay Later (BNPL). DPC refers to an interest‑free credit product, repayable in 12 or fewer instalments in 12 months or less and which is currently exempt from regulation. We refer to the product as DPC as this is the name given to it in the legislation that will bring it into regulation. In addition, we already have rules for other regulated credit agreements with ‘buy now pay later offers’, for which we use the term BNPL. These are distinct from DPC.

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Source: Financial Conduct Authority — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works