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ACT welcomes new Buy-Now, Pay-Later protections for cycle shoppers
Posted on 15 Jul 2026
The ACT has welcomed new rules protecting Buy-Now, Pay-Later shoppers, which came into force this week.
The rules, overseen by the Financial Conduct Authority (FCA), mean providers such as Klarna, PayPal and Clearpay must now carry out affordability checks before offering credit, and shoppers seeking a refund for faulty goods have clear, enforceable rights to claim one. Anyone who falls into financial difficulty will also be able to complain to the independent Financial Ombudsman Service.
The ACT said the change brings welcome consistency for cycle retailers offering credit at the point of sale, though it will also mean new compliance requirements including staff training and FCA registration.
Jonathan Harrison
Jonathan Harrison, ACT Director, said: "This is a significant change for any retailer offering Buy-Now, Pay-Later, and it's important our members understand what's required of them. We'll be working to make sure ACT retailers have the guidance they need to stay compliant."
The ACT has already been working with members to prepare for the changes, advising retailers to review customer-facing finance promotions, remove outdated references to "unregulated" BNPL products where applicable, and work closely with their finance providers to ensure they are ready for the new requirements, while confirming that updated marketing materials and further guidance will continue to be made available to support compliance.