What's changed?

Buy Now, Pay Later providers are now regulated by the Financial Conduct Authority (FCA).

That means stronger protections for consumers and more responsibility on providers to make sure borrowing is affordable.

More affordability checks

One of the biggest changes is that providers now need to check whether repayments are affordable for you before approving a purchase.

These checks can apply even to smaller purchases.

That means you may be asked for more information than before, and some people who were previously approved could now be declined.

Clearer information

Providers now need to explain things more clearly before you borrow, including: 

• How much you'll repay
• When payments are due
• What happens if you miss a payment

If you’re finding it difficult to make repayments, providers must be able to offer support and direct you to free debt advice.

The aim is to help people understand exactly what they're agreeing to before they borrow.

Better protection if something goes wrong

If you can't resolve a complaint with your Buy Now, Pay Later provider or you're not happy with the service, you can now take complaints to the Financial Ombudsman Service.

For some purchases over £100, you may also have additional protection if something goes wrong with your purchase.

What if I'm declined?

Because providers now carry out affordability checks every time you apply, some people who have previously used Buy Now, Pay Later successfully may not be approved for a new purchase.

If that happens, avoid turning to high-cost or unregulated borrowing, and take the time to explore safer options that may be better suited to your circumstances.

Where can I get support?

Different lenders assess applications differently. At Great Western Credit Union, we look at more than just your credit score. We also look at your wider circumstances and individual situation because we know one number doesn't always tell the full story.

If you're reviewing your finances or planning a larger purchase, there are plenty of places you can turn for support:

•  Use our Better Off Calculator to check if you're receiving all the              support you're entitled to.
•   Learn how to build a financial safety net through regular saving.
•   Explore our fair and affordable borrowing options 

You can also get free, independent support from charities like turn2us or StepChange

The bottom line

While the changes give you stronger protections and more information before you borrow, it's still worth taking a moment to make sure any repayments fit comfortably within your budget.

If you're ever unsure about your options, remember you don't have to figure it out alone. Whether it's exploring the support you're entitled to, building a savings safety net or looking for a fairer way to borrow, we're here to help.