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 an FCA consultation on Buy Now Pay Later, a joint FCA and FOS consultation on the redress framework, and details about a new debt advice service for energy consumers.
FCA to regulate Buy Now Pay Later
Legislation to bring Buy Now Pay Later (BNPL) under the regulation of the Financial Conduct Authority (FCA) came into effect on 15 July 2025.
The FCA has published a consultation on their proposed approach to regulation to ensure BNPL consumers receive adequate protections. The proposals include:
requiring firms to check that BNPL repayments are affordable
requiring firms to offer support for those in financial difficulty
consumers having access to the Financial Ombudsman Service
The consultation closes on 26 September 2025.
Protections to help Buy Now Pay Later borrowers navigate their financial lives
CP25/23: Deferred Payment Credit (unregulated Buy Now Pay Later)
The Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) Order 2025
Reforms to modernise the redress framework
The FCA and Financial Ombudsman Service (FOS) have published a joint consultation seeking views on its proposals to modernise the redress framework so that it gives consumers quick and fair compensation where they are owed it. Proposals include:
firms providing good practice examples for identifying and monitoring redress issues
amendments to the FCA Supervision Handbook clarifying when firms should report issues to the FCA that might cause potential harm to consumers
stronger collaboration between the FCA and FOS through a new lead complaint process
The consultation closes on 8 October 2025.
CP25/22 Modernising the Redress System
New debt advice service for energy consumers
Citizens Advice will be launching the Consumer Energy Debt Advice (CEDA) service in partnership with the Money Advice Trust and StepChange later this year.
Individuals that contact CEDA will be able to access support from these organisations including the Citizens Advice Extra Help Unit for vulnerable consumers.