The FCA confirmed draft rules for deferred payment credit (DPC) will be implemented largely unchanged from 15 July 2026. DPC lenders must provide pre-contractual info, conduct credit assessments, and comply with FCA rules, focusing on consumer protection. Existing DPC lenders can enter a temporary permissions regime to continue lending post-2026.

DPC lenders must align with FCA expectations, focusing on consumer outcomes and avoiding harm. Compliance may lead to consolidation in the market. Additional disclosure requirements aim to inform borrowers but may impact user experience. Lenders must use durable mediums for communication and conduct creditworthiness assessments.

FCA’s Consumer Credit Directive 2 will regulate previously excluded credit agreements, including buy-now pay-later loans. Lenders must provide pre-contractual info, conduct credit assessments, and include prescribed info in credit agreements. CCD2 aims for maximum harmonization, impacting various types of credit agreements.

DPC lenders have the opportunity to enhance operating models, refine disclosure processes, and adopt durable mediums for communication. Those who adapt to regulatory changes will differentiate themselves and build trust with customers. Some may reassess product design or governance frameworks to support sustainable growth in a maturing market.

Read more at Yahoo Finance: Deferred Payment Credit comes within the FCA’s perimeter