BNPL survey data ahead of today’s FCA regulation changes
Three quarters of people who used Buy Now Pay Later (BNPL) say it caused them to spend more than they originally intended, according to new research published as new Financial Conduct Authority regulations come into force.
From today (15 July), Buy Now Pay Later lenders must be authorised by the FCA and will, for the first time, be required to carry out affordability checks, provide clearer information about repayment terms and give consumers access to the Financial Ombudsman Service.
The reforms are designed to strengthen protections for the estimated 11 million UK adults who use Buy Now Pay Later products.
Research by Park Christmas Savings among 3,000 UK households found that 75% of respondents who had used BNPL believed it encouraged them to spend beyond their planned budget.
More than a third (35%) said they later regretted using the payment method.
Among those who used BNPL and subsequently fell into debt, 37% said repayments continued for between three and six months beyond the original repayment period, while almost a quarter (23%) said they were still paying off Christmas-related BNPL borrowing a year later.
The survey also found that 15% of respondents are still paying off Christmas 2025 spending of some kind.
Amy Peebles, family budgeting expert at Park Christmas Savings, said: “The introduction of FCA regulation is an important step in improving consumer protection for people using Buy Now Pay Later products.
“Our research suggests many households who rely on BNPL end up spending more than they intended, with some still repaying that borrowing many months later.
“While today’s changes introduce important safeguards, our findings also highlight the value of planning ahead and spreading costs throughout the year, helping households avoid relying on credit during the festive period.”