New regulations for Buy Now, Pay Later (BNPL) services came into effect in the UK on 15 July 2026.
These changes give customers stronger protections when using Clearpay, while keeping the overall Clearpay experience largely the same.
This article explains what’s changed and what it means for your Clearpay account.
What’s happened?
From 15 July 2026, Clearpay Plans became regulated credit agreements under the Consumer Credit Act 1974.
Clearpay Finance Limited is deemed authorised and regulated by the Financial Conduct Authority (FCA) for the purposes of the Temporary Permission regime for Regulated Deferred Payment Credit. Details of the Temporary Permission regime, which allows firms to carry on deferred payment credit activities while seeking full authorisation, are available on the FCA's website.
Does Clearpay still work the same way?
For most customers, the overall Clearpay experience remains largely the same.
You’re still be able to:
Pay in 4 interest-free instalments over 6 weeks
Shop online and in-store with the Clearpay Card
Delay payments where eligible
Discover and shop brands in the app
What new protections do I receive?
Clearpay customers now benefit from additional protections under UK consumer credit regulations, including:
A 14-day right to withdraw from a Clearpay Plan
The right to escalate unresolved complaints to the Financial Ombudsman Service
Section 75 protection on eligible purchases over £100
Stronger creditworthiness and affordability assessments for all customers
Is Clearpay still be interest free?
Yes. Clearpay continues to offer Pay in 4 interest-free instalments over 6 weeks.
The overall way Clearpay works remains largely the same for customers using the service responsibly.
Does Clearpay run credit checks?
Yes - we carry out regular creditworthiness and affordability assessments for all customers. As part of these assessments:
We may run soft credit checks, which do not impact your credit score
These checks are only visible to you and not to other lenders
We may occasionally ask you to confirm information such as your income and expenses
Do missed payments affect my credit score?
Missed payments may be reported to Credit Reference Agencies (CRAs).
This could affect your ability to access credit in future or make borrowing more expensive.
Does Clearpay share my information with Credit Reference Agencies?
Yes. As part of affordability and responsible lending assessments, we may share your personal information with Credit Reference Agencies to help us make lending decisions.
This is a standard industry practice and is explained in our Privacy Policy.
What happens if I miss a payment?
Our late fees have not changed.
We will charge:
£6 if a payment is missed, and
a further £6 if it remains unpaid after 7 days.
Late fees are capped at the lower of:
£24, or
25% of the purchase price.
If payments remain unpaid, we may:
report missed payments to Credit Reference Agencies,
restrict or suspend your account,
refer unpaid balances to a debt collection agency, or
close your account in certain circumstances.
If you’re experiencing financial difficulty, please contact us as soon as possible so we can discuss the support options available to you.
Can Clearpay suspend or close my account?
Yes. In addition to the consequences of missed payments described above, we may decline a new Clearpay Plan request, restrict your account, or close your account in certain circumstances. For example, this may happen if:
information from affordability or creditworthiness assessments indicates we should not provide further credit;
we identify adverse information from your credit report;
you repeatedly breach your Clearpay Plan Terms and Conditions; or
you fail to make repayments in accordance with your Clearpay Plan.
Where appropriate, we'll let you know if we take action on your account and what this means for your ability to use Clearpay.
Where can I read the updated Terms and Conditions?
Please refer to the links below - these can also be found on our website:
- Terms of Service
- Clearpay Plan Terms and Conditions