Shoppers using Buy Now Pay Later (BNPL) services have been subject to affordability checks since July, when the sector was brought under official regulation. Under the new rules, lenders such as Klarna and Clearpay must be approved by the regulator and each transaction is subject to an affordability check. Those who fail a check could be blocked from using BNPL for that purchase.
According to the BBC, the new regulations mean BNPL providers must now have regulator approval, giving shoppers more access to refunds and independent rulings on complaints. However, the affordability checks could also leave shoppers blocked from services for the first time. The checks vary for different purchases and are partly based on how much is borrowed, and with the festive season approaching, time and finances may be tight.
To help shoppers avoid being blocked, Sara Williams, a former volunteer debt adviser who posts tips as Debt Camel on social media, suggests four considerations: slow down purchases to determine if items are essential; be more careful about purchases to avoid needing a high credit limit for items like clothes in multiple sizes; cancel subscriptions to escape the trap of using BNPL to cover previous payments; and talk to debt charities for help and access to food bank vouchers if BNPL is being used for essentials.
The BBC also advises that anyone struggling to repay any type of loan should seek help before things spiral out of control. It recommends using the government-backed MoneyHelper website to find free debt advice, writing down exactly what is owed, and using tools to check benefit entitlements and prioritise bills.
Analysis
Why This Matters
- BNPL users may face unexpected blocks during the festive season when finances are tight.
- The regulation adds consumer protection but could restrict access to short-term credit.
Background
Buy Now Pay Later services were not officially regulated as loans in the UK until July 2026. Since then, lenders need regulator approval and must check affordability on each purchase.
What to Watch
- How the affordability checks affect holiday shopping.
- Whether borrowers move to alternative credit or seek debt advice.
Checked
11 claims in this story checked against 1 source: 10 supported.
Show each claim
- SupportedShoppers face affordability checks under new BNPL rules.BBC News: “But new affordability checks on each BNPL transaction could also leave you blocked from services for the first time.”
- Partly supportedLenders must approve each transaction.BBC News: “BNPL lenders - such as Klarna, Clearpay and others - must now have regulator approval to operate ... But new affordability checks on each BNPL transaction”
- SupportedThe story offers tips to help shoppers avoid being blocked.BBC News: “But, with the expensive festive season approaching, here's how to avoid being blocked when time and finances are tight.”
- SupportedShoppers who buy through BNPL have been subject to affordability checks since July, when the sector became officially regulated.BBC News: “If you've bought something via Buy Now Pay Later (BNPL) since the summer, then you'll have been tested to see if you can afford it. BNPL has always been a type of loan, usually paid back in instalments, but it's only been officially regulated since July.”
- SupportedBNPL lenders such as Klarna and Clearpay must have regulator approval to operate.BBC News: “BNPL lenders - such as Klarna, Clearpay and others - must now have regulator approval to operate”
- SupportedRegulator approval gives shoppers more access to refunds and independent rulings on complaints.BBC News: “must now have regulator approval to operate, giving shoppers more access to refunds and independent rulings on complaints if things go wrong.”
- SupportedA failed affordability check could block a shopper from BNPL for that purchase, potentially for the first time.BBC News: “But new affordability checks on each BNPL transaction could also leave you blocked from services for the first time.”
- SupportedAffordability checks differ by purchase and are partly based on the amount borrowed.BBC News: “There are different affordability checks for different purchases, partially based on how much is borrowed.”
- SupportedSara Williams is a former volunteer debt adviser at Citizens Advice who posts as Debt Camel on social media.BBC News: “from Sara Williams, a former volunteer debt adviser at Citizens Advice who posts tips as Debt Camel on social media.”
- SupportedThe BBC advises people struggling to repay any type of loan to seek help before things spiral out of control.BBC News: “If you are struggling to make repayments on any type of loan - BNPL or otherwise - you should seek help before things spiral out of control.”
- SupportedThe BBC recommends MoneyHelper for finding free debt advice, writing down debts, and using tools to check benefit entitlements and prioritise bills.BBC News: “The government-backed, independent, MoneyHelper website, external has a guide to finding free debt advice near you, external . It also suggests writing down exactly what you owe”