‘Buy now, pay later’ users will soon be able to bring complaints to the Financial Ombudsman

From 15 July, consumers who enter previously unregulated BNPL agreements will be able to bring eligible complaints to us if they are unable to resolve the issue directly with their provider.

We provide a free, independent and easy-to-use service that settles disputes between consumers and regulated financial businesses.

In our most recent Plans and budget, we said that we anticipate around 2,000 complaints from BNPL users in this financial year.

Consumers will need to complain to their BNPL provider first and, if they are unhappy with the response, they can submit a complaint through our online portal.

Consumers will need to provide some simple details about the lender and the nature of the complaint. We will then assess the evidence, considering the terms and conditions of the credit agreement and the relevant law and regulations.

Complaints about BNPL may include whether the lending was affordable, whether the consumer understood the agreement, or if the items paid for were of the expected quality.

We have been working closely with the Financial Conduct Authority (FCA) to ensure that we have the right processes and resources in place to handle complaints.

Consumers will be able to bring a complaint to us as long as:

• the complaint is about agreements taken out on or after 15 July 2026
• the complaint is about a regulated firm.

James Dipple-Johnstone, our Interim Chief Ombudsman, said:

This is an important step for consumers who use Buy Now Pay Later. If something goes wrong and they cannot resolve the issue with their provider, they now have access to our free and impartial service.

As new financial products become part of everyday spending, it is vital that consumer protection keeps pace. We have worked closely with the FCA to make sure we are ready to handle these complaints fairly and efficiently and have engaged with firms to ensure they understand our approach.