Major Buy Now Pay Later firm closes customer accounts ahead of rule change
NewsCost Of LivingYour MoneyC ustomers have been left unhappy over accounts being suddenly closed. 12:43, 20 Jun 2026Updated 12:47, 20 Jun 2026A m ajor Buy Now Pay Later firm is CLOSING customer accountsahead. . .
NewsCost Of LivingYour MoneyC ustomers have been left unhappy over accounts being suddenly closed. 12:43, 20 Jun 2026Updated 12:47, 20 Jun 2026A m ajor Buy Now Pay Later firm is CLOSING customer accountsahead of a rule change. Clearpay customers have been left unhappy over accounts being suddenly closed. It comes after new laws were introduced to bring Buy Now Pay Later (BNPL) firms in line with other lenders such as banks and credit card companies. One customer fumed on social media site Facebook:“After using Clearpay for years and having got my limit of £1,500 they have closed my account…“I use this regularly and am quite upset that they have done this after using it for years. ” Another added: “I’ve had the account for years and not missed any payments. I’ve been a loyal customer…READ MORE 10 travel firms collapse with holidays and trips cancelled - full list"It’s ridiculous and unfair for them to do this without contacting me with a reason why. ” From next month, BNPL will be subject to the Consumer Duty. BNPL provides an important source of credit for many, but there are no protections in place currently for those who use it repeatedly and may not be able to afford it. The aim of the new regulation is to help consumers navigate their financial lives, with appropriate support for consumers. Sarah Pritchard, deputy chief executive at the FCA, said: "'We want the Buy Now Pay Later sector to thrive – it provides an important source of credit to many – and we will continue to support firms who want to develop innovative new products. "But crucially, no one should be lent to if they're unable to repay, because that could worsen their financial situation. Now Parliament has given us the powers, we’re putting in place proportionate protections for the 11 million people who use it. "Lenders will need to be authorised by the FCA to provide BNPL. The FCA will provide pre-application support to these firms to help them get ready. Consumers will get clear, upfront details about their agreement, including when payments will be due, amounts, and what happens if they miss a payment. Lenders must carry out proportionate checks to make sure customers can afford to repay what they borrow before offering BNPL. Lenders will need to offer support to customers in financial difficulty, and, where appropriate, direct them to free debt advice. Article continues belowIf something goes wrong, consumers will be able to complain to the Financial Ombudsman Service. Choose Birmingham Live as a 'Preferred Source' on Google News for quick access to the news you value. Your Money