Consumer credit and buy now pay later promotion rules in the UK

The FCA's rules for consumer credit promotions are in chapter 3 of its Consumer Credit sourcebook (CONC). This guide covers unsecured credit and buy now pay later. Credit secured on land has its own section (CONC 3.6).

Most of CONC 3 works as a set of triggers: what an advert says decides what else it must say.

The standard for every credit promotion

A firm must ensure that each communication and each financial promotion: (a) is clearly identifiable as such; (b) is accurate; (c) is balanced and, in particular, does not emphasise any potential benefits of a product or service without also giving a fair and prominent indication of any relevant risks; (d) is sufficient for, and presented in a way that is likely to be understood by, the average member of the group to which it is directed, or by which it is likely to be received; and (e) does not disguise, omit, diminish or obscure important information, statements or warnings.

A credit promotion must also use “plain and intelligible language”, be “easily legible” and name the person communicating it. A broker's promotion must name the lender where it is known (CONC 3.3.2R). Comparisons must be “presented in a fair and balanced way” and be “meaningful” (CONC 3.3.1R(1B)).

The FCA lists practices likely to breach the standard (CONC 3.3.10G), including “stating or implying that a firm is a lender (where this is not the case)”, “using false testimonials, endorsements or case studies” and suggesting repayments will be lower “without also mentioning (where applicable) that the duration of the agreement will be longer or that the total amount payable will be higher”.

Never imply credit is available regardless of status

A firm must not in a financial promotion or a communication to a customer state or imply that credit is available regardless of the customer's financial circumstances or status.

The FCA's guidance names the usual culprits: “A statement or an implication that credit is guaranteed or pre-approved, or is not subject to any credit checks or other assessment of creditworthiness, may contravene CONC 3.3.3R”. A trading name, website address or logo can breach the rule too (CONC 3.3.4G). A brand name that promises guaranteed approval has a problem before the advert says anything.

When a representative example is required

Where a financial promotion indicates a rate of interest or an amount relating to the cost of credit whether expressed as a sum of money or a proportion of a specified amount, the financial promotion must also: (a) include a representative example in accordance with CONC 3.5.5 R, and (b) specify a postal address at which the person making the financial promotion may be contacted.

The FCA's guidance says a rate “would include a monthly or daily rate or an APR”, and an amount relating to the cost of credit “would include the amount of any fee or charge, or any repayment of credit (where it includes interest or other charges)” (CONC 3.5.4G). The representative example is not required where the promotion relates only to agreements with an APR of 0% (CONC 3.5.3R(2A)), or where a promotion caught by CONC 3.5.7R shows no cost figure other than the representative APR (CONC 3.5.3R(2)). Television and radio adverts, among others, are exempt from the postal address requirement (CONC 3.5.3R(3)).

What it must contain (CONC 3.5.5R(1)):

• the rate of interest, and whether it is fixed or variable;
• the nature and amount of any other charge included in the total charge for credit;
• the total amount of credit;
• the representative APR;
• for credit on specific goods or services, the cash price and any advance payment;
• the duration of the agreement;
• the total amount payable;
• the amount of each repayment.

How prominent (CONC 3.5.5R(5)): it must be “specified in a clear, concise and prominent way” and “accompanied by the words ‘representative example’”. Its items must be presented together, each given equal prominence, and the example must have “no less prominence than” any other cost-of-credit information in the promotion or any incentive. The figures must be ones the firm reasonably expects to be representative of the agreements the APR applies to (CONC 3.5.5R(2)).

When the representative APR alone is required

A promotion that gives no cost figure may still need the representative APR. It must include it if it implies credit is available to people who might think their access to credit is restricted, makes a favourable comparison about the credit or includes an incentive to apply. The APR must be no less prominent than the statement that triggers it (CONC 3.5.7R). The rule does not apply where the APR is 0%.

The guidance on incentives is wide (CONC 3.5.8G): “A statement about matters such as the speed or ease of processing, considering or granting an application, of entering into an agreement, or of making funds available, may constitute an incentive”, as may “gifts, special offers, discounts and rewards”. A trading name, website address or logo can trigger the requirement as well. An advert promising “cash in your account in minutes” is likely to need the representative APR.

The APR must be written as “%APR”, accompanied by “variable” if it can change and by “representative” when it is the representative APR (CONC 3.5.9R).

Words you can use only in narrow cases

A credit promotion must not use these words unless their condition is met (CONC 3.5.12R):

The payday loan warning

Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

A firm must not communicate or approve a promotion for high-cost short-term credit without this warning (CONC 3.4.1R(1)). It must be included “in a prominent way”, and the MoneyHelper logo may replace the website address (CONC 3.4.1R(3) and (4)).

Credit brokers

A firm which is a credit broker and not a lender must ensure that any financial promotion states prominently that the firm is a credit broker and that it is not a lender.

A broker must also indicate the extent of its powers, in particular whether it works exclusively with one or more lenders or independently (CONC 3.7.3R). It must give its legal name as it appears on the Financial Services Register, “not merely a trading name” (CONC 3.7.5R). The FCA's guidance asks brokers to disclose prominently any financial arrangements with lenders that might affect their impartiality, and to call themselves independent only if they offer a representative range of products (CONC 3.7.4G). A broker fee known to the lender forms part of the total cost of credit (CONC App 1.2.3R(2)), so it feeds into the APR and the representative example.

Image adverts are not exempt from everything

An advert that consists only of a name, logo, contact details or a brief factual description, or a combination of them, escapes most of CONC 3. It must still meet the clear, fair and not misleading rule; the regardless-of-status rule; the representative example and APR rules where triggered; and the restricted wording rules (CONC 3.1.7R). The FCA notes that “A name or logo may trigger the requirement to include a representative APR” (CONC 3.1.8G).

Buy now pay later since 15 July 2026

Most online buy now pay later products, where a third-party lender lets the customer pay for goods in interest-free instalments, used to be exempt from regulation. The Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) Order 2025 (S.I. 2025/859) brought this “deferred payment credit” (DPC) into regulation on 15 July 2026, 12 months after its first provisions took effect (article 1(3)).

1. 14 Jul 2025The order is made
2. 11 Feb 2026The FCA's final rulesPS26/1 sets the rules for lenders and brokers.
3. 15 Jul 2026Deferred payment credit is regulatedLending it becomes a regulated activity, and unauthorised merchants' promotions of it need approval.

For lenders, the existing CONC 3 rules apply to their promotions. In its new product information rules for deferred payment credit, the FCA reminds firms of “their obligations under CONC 3.3 (The clear, fair and not misleading rule and general requirements), Principle 12 and PRIN 2A (the Consumer Duty)” (CONC 4.2A.10G). Because DPC carries no interest, the 0% APR exceptions will usually remove the need for a representative example or APR. The restricted wording rules still apply: “interest free” is acceptable only where the total payable does not exceed the cash price.

For merchants, the Government decided that merchants who broker DPC stay exempt from authorisation, unless they sell at the customer's home (a “domestic premises supplier”) (S.I. 2025/859). Their promotions are not exempt: the Financial Promotion Order's exemption for introductions does not cover introductions to a DPC lender (PERG 8.12.11AG). The Order's explanatory note says “financial promotions communicated by an unauthorised merchant who offers a third-party lender's regulated deferred payment credit agreements as a method of payment will need to be approved by a FSMA authorised person under section 21(2)(b) of FSMA.” The approving firm needs the FCA's permission to approve for others, unless an exemption applies: a lender approving content it prepared itself for merchants to use does not need it (S.I. 2023/966, regulation 3; see section 21 approval and the gateway).

The FCA's concern predates the regime. In its social media guidance it said it had “seen poor quality promotions of deferred payment credit”, and that “Firms promoting BNPL products should make sure promotions include the relevant risks for these products” (FG24/1, paragraph 2.36). In 2024, its intervention with four BNPL firms led to 856 promotions being amended or withdrawn (FCA, financial promotions data 2024).

A checklist for credit promotions

Connor checks credit and BNPL adverts, social posts and web pages against these rules, quotes the words each finding is about and cites the rule.