Loans news
84 stories on loans, newest first. Every story is dated and cites its sources.
- July 2026
BNPL users can bring complaints to the Financial Ombudsman from 15 July 2026
From 15 July 2026 buy now pay later agreements taken out on or after that date fall under FCA rules, and consumers can bring eligible complaints to the Financial Ombudsman Service.
Buy now pay later agreements come into FOS scope
Buy now pay later agreements taken out on or after 15 July 2026 can now be taken to the Financial Ombudsman Service, extending formal dispute resolution to a sector that previously sat outside it.
Upper Tribunal suspends parts of motor finance compensation scheme
The Upper Tribunal has suspended parts of the FCA's motor finance redress scheme, so lenders need not calculate or pay compensation until the legal process concludes, though other rules still apply.
BNPL regulation due to come into effect
Buy now pay later regulation is due to take effect in July 2026, bringing Section 75 protection and access to the Financial Ombudsman for shoppers using deferred payment credit.
BNPL regulation rules come into force
Rules regulating buy-now-pay-later credit came into force in July 2026, after Parliament approved plans to bring the sector under regulation in July 2025.
FCA regulation of most BNPL agreements begins
Most buy now pay later agreements taken out from 15 July 2026 are regulated by the Financial Conduct Authority, bringing affordability checks, Ombudsman escalation and section 75 protections.
- June 2026
Compensation scheme starts for loans taken out after 1 April 2014
The FCA's motor finance compensation scheme opens on 30 June 2026 for loans taken out from 1 April 2014, with 12.1 million agreements eligible and average payouts of around £830.
BNPL to come within FCA regulation from summer 2026
Buy now, pay later will fall under Financial Conduct Authority regulation from summer 2026 under legislation already passed by the Government, with the FCA having consulted on draft rules for firms.
MCOB 11 updated with Consumer Duty references and revised exceptions to affordability assessment
The FCA Handbook's responsible lending chapter was updated on 26 June 2026, adding Consumer Duty wording to its purpose and revising the exceptions to the mortgage affordability assessment rule.
- May 2026
FCA confirms it will defend compensation scheme against legal challenge
The FCA has confirmed its motor finance compensation scheme has been legally challenged and says it will defend the scheme as lawful, with parts of it suspended by the Upper Tribunal.
- April 2026
FCA opens consultation on simplifying consumer credit financial promotions rules
The Financial Conduct Authority has opened a consultation on simplifying consumer credit financial promotions rules and improving how the cost of credit is disclosed to consumers.
Bank of England publishes 2026 Q1 Credit Conditions Survey
The Bank of England's 2026 Q1 Credit Conditions Survey reports that secured credit availability to households rose while unsecured availability was unchanged, and secured default rates increased slightly.
Plan 5 repayment holiday ends
A repayment exemption for plan 5 student loan borrowers, which applied on or before 5 April 2026, is omitted from 6 April 2026 under the Education (Student Loans) (Repayment) Regulations 2009.
- March 2026
FCA finalises revised motor finance compensation scheme
The FCA has finalised its motor finance compensation scheme, covering 12.1 million agreements made between 2007 and 2024, with an average payout of around £830 per agreement.
SLC opens application service for 26/27 academic year
The Student Loans Company has opened applications for 26/27 full-time undergraduate student finance in England, with Tuition Fee Loans of up to £9,790 and Maintenance Loans for living costs.
- December 2025
Consumer Scotland responds to FCA consultation on motor finance consumer redress scheme
Consumer Scotland has told the FCA's motor finance redress consultation that compensation should match court levels, that the scheme must be free to access and that lenders should chase customers.
FCA confirms complaints pause will end on 31 May 2026
The Financial Conduct Authority has confirmed that the pause on firms handling motor finance commission complaints will end on 31 May 2026, with lenders then required to respond to complaints.
- November 2025
Department for Education confirms updated student loan repayment thresholds for Plan 2 and Plan 3 from April 2026
The Department for Education confirmed on 26 November 2025 the student loan repayment thresholds for Plan 2 and Plan 3 loans that apply from April 2026, including £29,385 for Plan 2.
- October 2025
FCA launches consultation on proposed car finance redress scheme
The Financial Conduct Authority has opened a consultation on an industry-wide compensation scheme for motor finance customers overcharged on car finance deals taken out between April 2007 and November 2024.
- September 2025
Treasury answers parliamentary question on mis-sold car finance compensation
The Treasury told Parliament on 8 September 2025 that it is working with the Financial Conduct Authority and Prudential Regulation Authority on motor finance commission practices, after the Supreme Court clarified the law.
FCA consulted on draft rules for BNPL firms
The FCA has consulted on draft rules and guidance for buy now pay later firms, ahead of bringing deferred payment credit into its regulation from summer 2026.
Personal loan debt among StepChange clients up three percentage points year on year
Half of StepChange clients who sought debt advice in September 2025 were in debt because of personal loans, up from 47% in September 2024, as average household bill arrears rose 10% to £4,447.
- August 2025
Motor finance commission complaints fall to 21,500
New motor finance commission complaints at the Financial Ombudsman Service fell to 21,500 between April and June 2025, down from 36,000 in the final quarter of 2024/25.
Unaffordable lending complaints halve year on year
The Financial Ombudsman Service processed 68,000 new complaints between April and June 2025, with unaffordable lending cases halving to 10,000 from 21,600 a year earlier.
- July 2025
Affordability, explanation and switching policy rules revised
The Financial Conduct Authority has updated mortgage rulebook provisions on remortgaging without additional borrowing, covering the more affordable test, explanation and warning requirements, and internal switching policies.
FCA publishes consultation paper CP25/23 on final rules for BNPL lenders
The FCA has published consultation paper CP25/23 setting out proposed rules for buy now pay later lenders, with regulation limited to third-party lender agreements and due to take effect on 15 July 2026.
2025 Order passed setting provisions for regulating BNPL products
The 2025 Order passed on 14 July 2025 sets provisions to bring interest-free buy now pay later products under Financial Conduct Authority regulation from 15 July 2026.
BNPL to come under FCA regulation
Buy Now Pay Later will come under Financial Conduct Authority regulation in July, the Centre for Responsible Credit has told the Treasury Committee, though it warns current affordability rules may not protect borrowers.
- May 2025
Government lays BNPL legislation and commits to reviewing approach to domestic premises suppliers
The government laid secondary legislation on 19 May 2025 to regulate interest-free buy now pay later products from July 2026, while committing to review how the rules treat businesses selling in customers' homes.
Government publishes BNPL consultation response and confirms it will bring BNPL into regulation
HM Treasury has published its response to the October 2024 consultation on draft BNPL legislation and confirmed it will lay the draft statutory instrument to bring buy now pay later products into regulation.