The monthly round-up of news, guidance, legislation, and case law from Shelter's Specialist Debt Advice Service.
News and legal updates
This month's legal round up includes new protections for BNPL agreements and warnings for claims management companies.
Buy Now Pay Later – new rules
The Financial Conduct Authority (FCA) has confirmed that new protections will apply to Buy Now Pay Later (BNPL) agreements from 15 July 2026. These include:
providing clear and timely information before entering an agreement that explains the consequences of non-payment
carrying out affordability checks and creditworthiness assessments
consumers being able to complain to the Financial Ombudsman Service
The Consumer Duty will also apply to BNPL agreements.
FCA proposed approach to BNPL regulation
Claims management companies warned about motor finance complaints
The FCA and the Solicitors Regulation Authority (SRA) have warned claims management companies and law firms that they are expected to have robust checks in place to confirm consumers have not already instructed another firm. They warned that consumers should not be charged excessive fees for ending a duplicate claim.
They have also written to motor finance lenders to set out the steps they should take to address the growing risk of harm relating to complaints where there is more than one firm appointed for the same motor finance complaint.
FCA and SRA warning to firms representing motor finance commission claims
Report on council tax debt collection practices in England
The Money Advice Trust has published a new report on council tax collection in England.
The report says that one in four people National Debtline helped have council tax debt, owing just over £2000 on average. People whose council demanded they pay the full bill after falling behind said they had to take drastic measures to try and make the payments their council wanted.
Three quarters (74%) fell behind on other essential bills
Half (54%) went without food
Two in five (41%) borrowed money to pay
Three in five (57%) said it had a negative impact on their mental health and half (54%) said it negatively affected their children
Two in five (39%) were scared they would be sent to prison if they didn’t pay
The report also highlights low levels of awareness of council tax support.
Lost in the system: Experiences of council tax collection in England
Consultation on credit reference reporting
The FCA has published a consultation on credit reference agencies. It has proposed that where a firm shares consumer credit information with at least one credit reference agency, they must also share that information with all credit reference agencies.
The changes aim to close gaps in consumers’ credit files and ensure these more accurately reflect people’s financial circumstances.
The consultation closes on 1 May 2026.
Consultation on proposals to improve consumer credit information sharing
Case law
Find debt case law summaries by topic on Shelter Legal.
Reid-Roberts v Mei-Lin
The court held that an order for sale in bankruptcy can be delayed in exceptional circumstances and that WhatsApp messages can only confirm a transfer of interest if they are signed.
Read the summary of Reid-Roberts v Mei-Lin on Shelter Legal.
Spotlight
This month's article from Shelter's Specialist Debt Advice Service.
Challenging an out of time penalty charge notice
What are your client's next steps when they first hear about enforcement of a Penalty Charge Notice following a visit from enforcement agents?
Our guide explores options to challenge a parking or road traffic charge when the deadline has passed.
Read about Challenging an out of time penalty notice.