Deferred payment credit and BNPL

We can deal with complaints where your customer may believe:

• their application for a BNPL agreement was declined unfairly or that you made a mistake
• you’ve asked them to pay charges unfairly because they weren’t expecting to be charged or the amount is incorrect
• information on their credit file is incorrect
• you’re asking them to make payments they’ve already paid or are not due
• they want to return, or have already returned, what they bought or there is some other problem with the goods or services they purchased
• you mis-sold them their BNPL or a deferred payment credit agreement, because:
  • it was unsuitable or was the wrong type of agreement
  • you didn’t clearly explain the terms and conditions
  • information they received wasn’t correct
  • they believe they were pressured into taking BNPL or a deferred payment credit agreement.

We also hear from small businesses about problems with:

• merchant services
• payment settlements
• chargebacks

We have separate guidance on complaints that involve:

• Vulnerability
• Discrimination
• Disputed transactions
• Financial difficulties
• Unaffordable lending

When we look at complaints about BNPL and DPC, we use the regulatory and legal standards that applied at the time of the event the customer is complaining about.

You’ll find rules, guidance and good practice on BNPL and DPC, in:

• the Consumer Credit sourcebook (CONC) which sets out the rules for all credit-related regulated activities
• the Financial Conduct Authority (FCA) Handbook
• the Prudential Regulation Authority (PRA) Rulebook
• Section 75 of the Consumer Credit Act 1974 which applies to some complaints about goods or services financed by DPC
• the FCA’s guidance on the fair treatment of vulnerable customers, and
• the Consumer Duty. 

We only look at complaints you've had an opportunity to deal with first. If the consumer is unhappy with your decision, or you don't respond to them within the time limits, they can come to us. 

Each case is different, so what we require will vary. But we’ll look at the facts and evidence from both you and your customer. What we consider will usually include:

• relevant laws, rules and regulations, guidance, standards and codes of practice that were in place when the event happened
• your customer’s application for deferred payment credit
• the terms and conditions of the credit agreement
• correspondence between you and your customer
• payment records
• any affordability checks you carried out.

We may also ask additional questions, or for specific information.

If your customer has several BNPL agreements which they don’t think they should have been given, we'll want to know how you ensured that they:

• understood what they had agreed to, and
• that they were able to meet their existing financial obligations when they entered into each new agreement. 

We follow the FCA’s dispute resolution rules (DISP) and will take into account how you’ve tried to put things right. 

If we uphold a consumer's complaint, we'll tell you what you need to do to put things right. We may also ask you to compensate them for any distress or inconvenience they’ve experienced as a result of the problem.

Businesses and consumer advisers can contact our Business Support Hub on 020 7964 1400 for information on how we might look at a particular complaint, or for guidance on our rules and how we work.

We also work with businesses and other organisations to help prevent complaints.