Been Rejected for Buy Now Pay Later? The Rules Have Changed

What are the new Buy Now Pay Later rules?

Buy Now Pay Later has changed significantly for UK shoppers. From the 15th of July 2026, many of the services that let you divide a purchase into several payments became regulated by the Financial Conduct Authority, bringing affordability checks and stronger consumer rights into a part of the credit market that had previously operated with fewer protections.

That should make Buy Now Pay Later safer for many people, particularly when repayments become difficult, or something goes wrong with a purchase. There’s another side to the changes, though, because the same checks designed to stop unaffordable borrowing may mean some people who’ve used BNPL before are no longer accepted.

That becomes especially important when the purchase isn’t something you can simply put off. If your fridge stops working, your washing machine breaks or your child needs a replacement bed, being told that you can’t use the payment option you expected to rely on leaves a very different problem to solve.

What are the new Buy Now Pay Later rules?

The new Buy Now Pay Later rules bring third-party Deferred Payment Credit, the regulatory name used for much of what shoppers know as BNPL, under FCA regulation. Providers must either be authorised for the relevant credit activities or have temporary permission to continue providing new regulated agreements.

For shoppers, the more noticeable changes concern what needs to happen before and after borrowing. Lenders need to provide information that helps customers understand the agreement, lend responsibly, consider affordability and offer appropriate help when someone is struggling to repay.

The rules generally apply to new regulated BNPL agreements entered into from the 15th of July. Agreements made before regulation day remain exempt from this new regulatory framework, so don't assume an older purchase has automatically gained all of the new protections.

What is an affordability check?

An affordability check is an assessment designed to establish whether you should reasonably be able to repay the credit you're asking for. The FCA says these assessments should be proportionate, which means lenders can adjust the way they assess affordability according to the product, amount being borrowed and individual circumstances.

This matters because BNPL approval is no longer simply about whether you've used the service before or always made previous payments on time. Someone applying for a new transaction may still face a different decision if the lender believes another repayment could put too much pressure on their finances.

That doesn't necessarily mean every BNPL purchase involves an intrusive examination of your bank statements. The checks are intended to be proportionate, rather than identical for every customer and every purchase, but the central principle is that lenders should have reasonable confidence that the credit can be repaid without creating financial difficulty.

Could you now be rejected for BNPL?

Yes, some people who previously used Buy Now Pay Later may now be refused when attempting another purchase. The FCA itself acknowledges that customers who have used BNPL regularly may find it harder to access after affordability assessments became part of the regulated process.

Fair4All Finance has tried to estimate the scale of that effect. Its modelling suggests somewhere between 10% and 30% of existing BNPL users could potentially be rejected under the new regime, with the effect expected to be concentrated among people in more financially precarious circumstances.

That range should be treated as modelling rather than a prediction that 30% definitely will lose access. Fair4All Finance also says almost half of those it identifies as likely to be rejected hadn't previously missed a BNPL payment, which illustrates why the issue isn't quite as simple as separating people into responsible and irresponsible borrowers.

Is being rejected necessarily a bad thing?

Being refused credit can be frustrating, but an affordability check is meant to stop a lender adding another repayment where the evidence suggests it may not be manageable. If the alternative is taking on debt that forces you to miss household bills or borrow again to cover the repayment, rejection may be doing exactly what the new regulation was intended to achieve.

There’s an important distinction between wanting credit and being able to afford it. A history of paying previous BNPL purchases doesn't automatically mean another agreement is affordable today, particularly if household income or other commitments have changed.

Where the argument becomes more difficult is when someone can afford a modest repayment but doesn't fit neatly into a lender's assessment. Fair4All Finance argues that excessive caution could exclude some consumers who had previously managed BNPL responsibly, leaving them with fewer low-cost borrowing options.

What new consumer rights do you get?

The new BNPL rules give borrowers protections much closer to those associated with other regulated forms of consumer credit. That includes clearer information before borrowing, support if you fall into financial difficulty and the ability to take eligible complaints to the Financial Ombudsman Service.

Previously, a dispute with a BNPL provider could leave shoppers with fewer formal routes for escalating a complaint. Access to the Financial Ombudsman means an independent body can now consider qualifying disputes when they haven't been resolved directly with the lender.

Providers are also expected to treat customers experiencing financial difficulty appropriately. The FCA gives examples that could include accepting reduced repayments or giving someone more time, depending on their circumstances.

Does BNPL now have Section 75 protection?

Some qualifying purchases made under new regulated BNPL agreements can now receive Section 75 protection. This can make the lender jointly responsible with the seller where the requirements of Section 75 are met, and there has been a breach of contract or misrepresentation.

For the familiar type of Section 75 protection associated with credit cards, the cash price of the item or service generally needs to be more than £100 and no more than £30,000. The exact circumstances still matter, so having paid by a regulated BNPL agreement doesn't mean every problem or every refund automatically becomes a Section 75 claim.

The date is important as well. Older BNPL agreements entered into before the 15th of July remain exempt from the new regime, so the new rights shouldn't be assumed to apply retrospectively.

What happens if you're struggling to repay BNPL?

Contact the lender as soon as you think a repayment may be difficult. FCA-regulated firms are expected to support customers experiencing financial problems, rather than treating missed payments purely as a collection issue.

That support will depend on the circumstances, but the FCA says it might include a lower repayment or extra time to pay. Waiting until several instalments have been missed can leave fewer options and make the situation harder to untangle.

Free independent guidance is also available through MoneyHelper and debt charities. If you're using one BNPL agreement to make repayments on another, or juggling several payment plans alongside household bills, getting advice before taking out more credit is likely to be more useful than simply finding another lender.

What if your fridge breaks and BNPL rejects you?

This is where the new rules create a more difficult consumer question. Declining a £150 fashion purchase is inconvenient; refusing someone who needs to replace a broken fridge or washing machine can leave them with an immediate household problem and no obvious way to pay for it.

Fair for You[£], which previously contacted me about its Iceland Food Club scheme, raised exactly this issue when discussing the new rules. The charity-owned, not-for-profit lender argues that households should know about responsible alternatives before an emergency happens, because searching for credit while standing next to a broken appliance isn't an ideal position from which to make a financial decision.

That doesn't mean another loan should automatically replace the BNPL agreement you've been refused. If affordability is already stretched, borrowing through a different provider could simply move the problem elsewhere. The starting point should always be whether you can genuinely manage another repayment.

Could Fair for You be an alternative to BNPL?

Fair for You is a regulated lender rather than a conventional Buy Now Pay Later service. It is owned by the Fair Credit Charity and provides loans designed around household purchases, including credit for individual essential items and a Shopping Card loan that can be used with participating retailers.

At the time of checking, its Shopping Card lets eligible customers apply to borrow between £50 and £350 on a prepaid Mastercard. It can be used at participating retailers including Argos, Currys and Iceland, while repayment schedules can be weekly, fortnightly, four-weekly or monthly.

There is an important cost difference from the interest-free BNPL products many shoppers know. Fair for You's Shopping Card loan charges interest, with its own published information currently stating that 4.25% interest is applied each month, so you need to look at the total amount repayable rather than comparing only the size of each instalment.

Fair for You carries out affordability and eligibility checks too. Its email makes the point that people already struggling with credit may not be able to borrow from it until their circumstances improve, which is important because describing the service as an alternative shouldn't imply guaranteed acceptance.

What other alternatives are there if BNPL turns you down?

Being declined for Buy Now Pay Later shouldn't send you straight towards whichever lender is willing to say yes. The alternatives depend on why you're borrowing, how urgently you need the purchase and whether repayment is genuinely affordable.

For an essential purchase, it may be worth checking whether a local credit union can help. Credit unions are member-owned financial organisations and usually have membership rules based on factors such as where you live or work, so availability differs around the country.

Community Development Finance Institutions, commonly called CDFIs, are another part of the affordable-credit market. They exist partly to provide responsible finance to people and communities underserved by mainstream lenders, although products, eligibility and costs vary between providers.

A 0% purchase credit card may also allow an eligible borrower to spread a cost without interest during the promotional period. That only works as a saving if you can clear the balance within the interest-free period and avoid turning a short-term expense into long-running card debt.

For some purchases, there may also be a non-credit solution. Buying refurbished, checking local reuse organisations, asking the council about household support schemes or using savings can sometimes avoid borrowing altogether, particularly when the item doesn't need to be brand new.

Don't replace cheap borrowing with expensive borrowing

One of the biggest risks created by tighter BNPL access is that someone rejected from a relatively low-cost credit product looks for something more expensive. Fair4All Finance has specifically raised concerns about rejected borrowers turning towards high-cost credit or illegal lenders if responsible alternatives aren't available.

That makes the price of the replacement credit just as important as whether you're accepted. Compare the total amount repayable, APR where applicable, payment frequency, late-payment consequences and whether you'll be able to repay early without an extra charge.

A lender saying yes doesn't mean borrowing is automatically right for you. If repayments would leave too little for rent, energy, food or other priority bills, taking the credit may make a temporary problem considerably more expensive.

Will BNPL now affect your credit score?

The new regulation doesn't mean every affordability assessment automatically damages your credit score. Different lenders can use different information and credit-reference processes when making lending decisions, so you should check the provider's terms before applying if you're concerned about how a search will appear on your credit file.

Missed payments remain more important. BNPL is borrowing, and repayment problems can affect future access to credit depending on how a provider reports account information and how subsequent lenders assess it.

The safest assumption is therefore not that BNPL sits outside your wider financial life. Treat every agreement as debt, keep track of outstanding instalments and don't rely on having several separate providers as a way of making the overall borrowing affordable.

Are the new BNPL rules good for shoppers?

On balance, the protections address some obvious weaknesses in the old system. It was difficult to justify BNPL operating with fewer safeguards than other forms of consumer credit when millions of people were using it to borrow at online and physical checkouts.

Affordability checks, clearer information, Ombudsman access and greater protection when purchases go wrong all give shoppers more protection than they had before. The rules also make the status of BNPL clearer, because paying in instalments may feel very different from taking out a loan, but it remains a form of borrowing.

The question worth watching now is what happens to the people who no longer pass those checks. If someone is being protected from genuinely unaffordable borrowing, that's the system doing its job; if people capable of repaying small sums lose access to low-cost credit and move towards more expensive alternatives instead, the consumer outcome becomes less clear.

If you use BNPL, don't wait until the checkout to find out whether the rules affect you. Know what you currently owe, make sure the next repayment genuinely fits your budget and have a plan for essential purchases that doesn't depend entirely on one provider continuing to approve you.

Frequently asked questions

What are the new Buy Now Pay Later rules?

Buy Now Pay Later lenders are now regulated by the Financial Conduct Authority and must carry out affordability checks, provide clearer information and support customers in financial difficulty. New agreements can also carry stronger complaint and purchase protection rights.

Do BNPL providers now carry out affordability checks?

Yes. Lenders must assess whether the borrowing is affordable before providing regulated Buy Now Pay Later credit, and the assessment can depend on the amount and the customer's circumstances.

Can I be rejected for Buy Now Pay Later even if I have used it before?

Yes. Previous approval doesn't guarantee that a new BNPL purchase will be accepted because lenders now need to consider affordability when new regulated credit is offered.

Does Section 75 now cover Buy Now Pay Later?

Some regulated BNPL purchases made from the 15th of July onwards can qualify for Section 75 protection when the relevant conditions are met. Agreements taken out before regulation began remain outside the new regime.

What can I use instead if Buy Now Pay Later rejects me?

Alternatives can include savings, credit unions, community lenders, 0% purchase cards where suitable, or regulated affordable-credit providers. Being rejected is also a reason to reconsider whether another repayment is affordable before looking for replacement borrowing.