New Lending Rules Coming in 2026 – Are You Prepared?

Buy Now Pay Later (BNPL), also known as Deferred Payment Credit (DPC), will officially come under FCA regulation from 15 July 2026.

This is a significant change for the credit market and for consumers.

At Boom Community Bank, we welcome regulation that promotes responsible lending, affordability checks, and better support for customers facing financial difficulty.

What is Changing?

From 15 July 2026:

• Third-party BNPL lenders will be regulated by the Financial Conduct Authority (FCA).

• BNPL agreements provided by separate lenders (not the retailer itself) will become regulated credit agreements.

• Firms will need FCA authorisation or temporary permission to continue operating.

• Lenders will need to carry out affordability checks and provide clearer information.

The aim is to reduce consumer harm while allowing the market to operate sustainably.

Why Regulation Matters

BNPL has grown rapidly in recent years. While it can be helpful for short-term cash flow, it can also:

• Encourage impulse spending

• Make it harder to track total borrowing

• Lead to missed payments and additional charges

• Contribute to multiple overlapping debts

Regulation will require lenders to:

✔ Lend responsibly and assess affordability
✔ Provide clearer information before and during agreements
✔ Support customers in financial difficulty
✔ Report better data to the FCA

This is a positive step toward protecting consumers.

What If You Already Use BNPL?

If you already have BNPL agreements taken out before July 2026, they will remain exempt from the new regulation rules.

However, if you are juggling multiple BNPL payments alongside credit cards or loans, now is a good time to review your overall borrowing.

Struggling with Multiple BNPL Payments?

Many people don’t realise how quickly several small BNPL purchases can add up. When combined with credit cards or overdrafts, repayments can become difficult to manage.

One option to consider is debt consolidation.

A debt consolidation loan allows you to:

• Combine multiple debts into one manageable monthly payment

• Potentially reduce overall interest

• Simplify your finances

• Improve budgeting and cash flow

At Boom Community Bank, we offer affordable loans and debt consolidation options designed to help members regain control of their finances.

Unlike high-cost lenders, we focus on responsible lending and supporting our community.

Take Control Before Regulation Day

You don’t need to wait until 2026 to improve your financial wellbeing.

We recommend:

• Reviewing your total borrowing (including BNPL)

• Creating or updating your household budget

• Checking interest rates across all credit agreements

• Exploring lower-cost credit options

Visit our Money Focus hub for budgeting tools and practical guidance.

If you’re concerned about debt or managing repayments, our team is here to help.