The monthly round-up of news, guidance, legislation, and case law from Shelter's Specialist Debt Advice Service.
New and legal updates
This month's legal round up includes new guidance on Buy Now Pay Later complaints and information on the Insolvency Service's new business plan.
Buy Now Pay Later - new guidance on complaints
The Financial Ombudsman Service has published its latest update that includes new guidance on Buy Now Pay Later complaints and deferred payment credit.
Ombudsman News – 4 August 2026
Deferred payment credit and BNPL
Reforms to modernise the redress framework
The Financial Ombudsman Service has released a policy statement confirming its decisions following the joint consultation with the Financial Conduct Authority on Modernising the Redress System (see our July 2025 ebulletin).
A new case registration stage will be piloted from October 2026. During this stage consumers will be asked for key information about their complaint before it is moved on to the investigation stage.
New grounds for the dismissal of a complaint will be introduced. These will include frivolous or vexatious complaints and where a complaint is more appropriate for a court, arbitration or other complaint scheme or dispute resolution process.
The statement also confirms that when considering what is fair and reasonable, decisions will consider only the law, rules and standards that were in place at the time of the acts or omissions which gave rise to the complaint.
Modernising the Redress System: policy statement August 2026
CP26/9: Modernising the redress system
The Insolvency Service Business Plan
The Insolvency Service has published its annual plan for 2026 to 2027. It outlines how the Insolvency Service will focus on its three core purposes:
maximising returns to creditors
tackling financial wrongdoing
supporting those in financial distress
As part of supporting those in financial distress, the Insolvency Service intends to:
consult on options for reforming personal insolvency
begin work to help small and medium-sized businesses deal with financial difficulty quicker and easier
The Insolvency Service Annual Plan 2026 to 2027
Caselaw
Find debt case law summaries by topic on Shelter Legal.
Together Commercial Finance Ltd and others v Slack and another
A mental health crisis moratorium does not prevent a creditor from selling a charged property where the charge only secures the debt of a third party.
Read the summary of Together Commercial Finance Ltd and others v Slack and another on Shelter Legal.
Spotlight
This month's article from Shelter.
Debts incurred through fraud
Fraud happens when someone deliberately uses misrepresentation, deception, or dishonesty to gain something for themselves or to deprive someone else of something. It can be a criminal offence or a civil wrong.
Our Shelter Legal page explains what fraud is and how debts incurred through fraud are viewed in a DRO, bankruptcy, and in breathing space.
Read Debts incurred through fraud on Shelter Legal.