Klarna and Buy Now Pay Later in the UK

Katerina Galkina · EN · 07/10/2026

Read the specific credit agreement

Klarna is a provider’s name, not a single set of conditions for every purchase. Before confirming, identify the product, total borrowing, first payment, remaining dates, interest, late fees and collection method. “Interest-free” does not remove the obligation to repay.

Put every instalment plan into one calendar alongside rent and normal bills. Check affordability if a refund is delayed or income arrives late. Do not judge the purchase only by its small first payment.

Account for the 2026 rule change

The FCA began regulating qualifying third-party Deferred Payment Credit on 15 July 2026 ↗. Agreements made before that date remain outside the new regime. Credit supplied directly by the retailer for its own goods is not automatically covered either. Check the lender using FCA Firm Checker and, where relevant, the temporary permissions register.

New regulated agreements require affordability assessment and information about terms. This does not guarantee approval or make the debt suitable for your budget. Before applying, read which credit search will be performed and how information is reported to credit reference agencies.

Deal with returns through both parties

Contact the retailer about the goods and separately notify the lender of a return or dispute through its procedure. Keep the order, terms, proof of posting and retailer confirmation. Posting a parcel back does not prove that the payment schedule has already been paused.

MoneyHelper explains the extension of section 75 to qualifying BNPL purchases ↗. For relevant new agreements, protection can apply to an item costing more than £100 and no more than £30,000. Check eligibility for the particular purchase. A provider’s own buyer-protection policy and statutory protection are separate grounds for a claim.

If repayment becomes unaffordable

Contact the lender before the due date and explain the difficulty. Ask about support and obtain written confirmation of any revised schedule. Do not stop paying solely because you are corresponding with the retailer, or fund one instalment plan with another without calculating the total debt.

Complain formally to the lender first. For a regulated agreement, escalation to the Financial Ombudsman Service may be available through the applicable process. If several debts or missed payments are involved, use MoneyHelper to find free debt advice addressing the whole budget rather than only one purchase.