The Buy Now, Pay Later (BNPL) industry is becoming regulated in the UK. Here's what's changing, and what it means for your Clearpay account.
What's happening?
From 15 July 2026, Clearpay will be regulated by the Financial Conduct Authority (FCA) under a temporary permissions regime. This means that we’ll continue offering our services as usual, while meeting the FCA's higher regulatory standards.
These new regulations will bring stronger protections for all BNPL customers in the UK, including:
- Easier access to support including if you're experiencing financial difficulty
- The right to escalate complaints to the Financial Ombudsman Service
- Stronger protection on purchases over £100 (Section 75 - a UK law that gives you extra protection on purchases), where you may be able to claim a refund from Clearpay if something goes wrong
Many of these protections build on what we already do. The new regulations formalise them across the entire BNPL industry.
Will the new regulations change how I use Clearpay?
We're working to make these changes as seamless as possible for you. For most customers, the overall experience should remain largely the same if you continue to use Clearpay responsibly.
Will Clearpay run credit checks on my account?
From 15 July 2026, we'll carry out regular credit and affordability assessments on all accounts to make sure Clearpay continues to work well for our customers. This is part of our regulatory obligations. Here's what that means for you:
- We may run soft credit checks which do not impact your credit score. These checks are only visible to you and are not visible to other lenders.
- Your estimated 'available to spend' may go up or down over time based on this information and your repayment history
- We may occasionally ask you to confirm details like your income and expenses
In the lead-up to 15 July, we may also review your estimated spending limit or ask you to provide income and expense information in the app as we prepare for the new requirements.
What if I don't want these assessments?
If you'd prefer not to have these assessments, you can close your account in the Clearpay app or website at any time. Find out how to close your account here.
Will a low credit score mean that I’ll receive a lower spend limit?
Not necessarily. A low credit score won’t automatically result in a lower spend limit and having a high credit score doesn’t guarantee a higher spend limit either. We consider your credit score along with several other factors when determining your spend limit.
Will Clearpay be sharing my information with credit reference agencies (CRA)?
As part of the changes on July 15 we will not be reporting your Clearpay account activity or repayment history to the CRA's. This means your Clearpay account will not be visible to other lenders on your credit report.
However in order to obtain your credit report data we do share your personal information with the credit reference agency. This is a standard practice to help us make responsible lending decisions and is outlined in our Privacy Policy.
Do I need to do anything?
There's nothing you need to do at this stage. We'll keep you updated and share more details closer to 15 July 2026.