Buy Now Pay Later Complaint Letter: The Complete 2027 UK Guide to Disputes, Refunds, and the New FCA Rules

Buy Now Pay Later Complaint Letter: The Complete 2027 UK Guide to Disputes, Refunds, and the New FCA Rules

Buy Now Pay Later (BNPL) has transformed how millions of people shop in the UK. Splitting a purchase into interest-free instalments feels convenient at checkout, but when things go wrong—such as a faulty item, an unrecognised charge, or a return that hasn't been processed—resolving the issue can quickly become a frustrating cycle of automated chatbots and delayed responses.

For years, BNPL operated outside full financial regulation in the UK. That is finally changing. From 15 July 2026, the Financial Conduct Authority (FCA) is bringing unregulated BNPL agreements under its full regulatory framework [1] [2]. This means stronger consumer protections, clearer terms, and, crucially, the right to escalate complaints to the Financial Ombudsman Service [1] [2].

This guide explains your rights when using BNPL services like Klarna, Clearpay, and Laybuy. It covers how to dispute a charge, how to claim a refund for faulty goods, what the new 2026 FCA rules mean for you, and how to write a formal complaint letter that gets results.

> LetterForce is not a law firm and this guide is for general information only. If your situation is complex, urgent, or involves court action, you should consider getting advice from a qualified adviser or solicitor.

When should you complain to a BNPL provider?

You should complain when a BNPL provider has failed to pause payments during a dispute, has continued to charge you for returned goods, has applied unfair late fees, or has failed to support you when you are in financial difficulty.

The strongest complaints usually involve a specific, documented problem. Often, the issue starts with the retailer (the merchant) but becomes a BNPL problem when the lender continues to demand payment for an item you do not have or that is faulty.

| Problem | Why it matters | What to ask for |

|---|---|---|

| Returned goods still being charged | You should not pay for items you have legally returned under the Consumer Contracts Regulations | A pause on payments, a corrected balance, and a refund of any instalments paid |

| Faulty or misdescribed items | Under the Consumer Rights Act 2015, you have a right to a refund, repair, or replacement | A pause on payments while the dispute with the retailer is resolved |

| Unfair late fees | Fees must be clear and proportionate | Removal of the fee and a correction of your account |

| Unaffordable lending | Providers must not lend if it worsens your financial situation | A tailored repayment plan and a freeze on interest/fees |

| Unrecognised charges | You are not liable for fraudulent transactions | Immediate investigation and a refund of unauthorized payments |

A written complaint is vital. It creates a dated paper trail, proving that you raised the issue and gave the company a chance to fix it. This evidence is essential if you later need to escalate the matter.

The rules that protect you (and the July 2026 changes)

BNPL disputes sit at the intersection of consumer law and financial regulation.

Your rights against the retailer:

When you buy something using BNPL, your contract for the goods is with the retailer. The Consumer Rights Act 2015 requires goods to be of satisfactory quality, fit for purpose, and as described [3]. If they are not, you have a short-term right to reject them within 30 days for a full refund. Furthermore, the Consumer Contracts Regulations give you 14 days to cancel an online order for almost any reason.

Your rights against the BNPL provider:

Historically, many BNPL agreements were exempt from the Consumer Credit Act because they did not charge interest and were repaid in fewer than 12 instalments. However, the regulatory landscape is shifting dramatically.

From 15 July 2026, the FCA is regulating the BNPL sector. Under these new rules, BNPL providers must comply with the Consumer Duty, meaning they must act to deliver good outcomes for retail customers [1]. Key changes include:

• Affordability checks: Lenders must carry out proportionate checks to ensure customers can afford repayments [1].
• Clear information: Consumers must receive clear, upfront details about their agreement [1].
• Support in difficulty: Lenders must offer support to customers struggling with repayments and direct them to free debt advice [1].
• Financial Ombudsman access: Crucially, consumers will be able to complain to the Financial Ombudsman Service if things go wrong [1] [2].

If you paid for a purchase using a credit card (even via a BNPL provider), you might also have protection under Section 75 of the Consumer Credit Act, which makes the credit provider jointly liable with the retailer for breaches of contract or misrepresentation for purchases between £100 and £30,000 [4]. However, the rules around Section 75 and third-party payment processors can be complex, so checking your specific agreement is important.

Step one: gather the evidence before you write

Before firing off an angry email, gather the facts. A successful complaint relies on evidence, not just emotion.

1. The purchase details: Save the original order confirmation, receipt, and delivery notes.

2. The BNPL agreement: Find the email or app notification showing your instalment plan and agreement number.

3. Communication with the retailer: This is critical. If you are disputing a faulty item or a return, you must show that you have tried to resolve it with the retailer first. Save all emails, chat transcripts, and return tracking receipts.

4. Bank statements: Show which instalments have already been paid.

| Evidence | Why it helps |

|---|---|

| Return tracking receipt | Proves the retailer received the item back |

| Emails with the retailer | Shows you attempted to resolve the core issue |

| Photos of faulty goods | Demonstrates a breach of the Consumer Rights Act |

| BNPL account screenshots | Shows the current disputed balance and any late fees applied |

Step two: identify the exact problem

Be precise about what went wrong.

If it is a returns dispute, state clearly that you returned the item on a specific date, provide the tracking number, and explain that the BNPL provider is still charging you. Ask them to pause your payment schedule while they investigate with the merchant.

If it is an affordability dispute, explain that your financial circumstances have changed or that the initial lending was irresponsible. Ask for a freeze on fees and a manageable repayment plan.

Step three: write a formal BNPL complaint letter

Your letter should be structured, factual, and polite. Include your account details, the specific problem, the evidence you have gathered, and exactly what you want the provider to do.

Here is a practical template you can adapt.

---

Subject: Formal complaint regarding disputed charge / returned item — Agreement Number: [Your Agreement Number]

Dear [BNPL Provider Name, e.g., Klarna / Clearpay Customer Service],

I am writing to make a formal complaint regarding my account, [Your Account/Agreement Number], associated with an order placed at [Retailer Name] on [Date] for [Amount].

I am disputing the current balance on this account because [briefly explain the issue: e.g., I returned the item on [Date] but I am still being charged / the item was faulty and the retailer has agreed to a refund but my payment plan has not been cancelled / I have been charged an unfair late fee despite notifying you of the dispute].

I have already contacted [Retailer Name] regarding this issue on [Date]. [Add a sentence explaining the retailer's response or lack thereof].

I have attached the following evidence to support my complaint:

• Proof of return / tracking receipt showing delivery on [Date]
• Copies of my correspondence with [Retailer Name]
• [Any other relevant evidence, e.g., photos of the faulty item]

Under the circumstances, I request that you:

1. Immediately pause all upcoming scheduled payments and late fees while this dispute is investigated.

2. Contact [Retailer Name] to confirm the return/refund status.

3. Correct my account balance to reflect the returned/faulty goods.

4. Refund the [Amount] I have already paid in instalments for this disputed order.

5. Ensure no negative markers are applied to my credit file regarding this disputed amount.

Please treat this as a formal complaint under your complaints procedure. I look forward to your written response within the required timeframe. If this matter is not resolved satisfactorily, I will consider escalating my complaint to the Financial Ombudsman Service.

I prefer to be contacted regarding this matter via email to ensure a written record of our communication.

Yours faithfully,

[Your Name]

[Your Address]

[Your Email Address]

---

What outcome can you ask for?

A strong complaint tells the provider exactly what a fair resolution looks like. Depending on the issue, you can ask for:

• A pause on all collections activity and late fees while the dispute is investigated.
• A full refund of instalments already paid for returned or faulty goods.
• The cancellation of the remaining payment plan.
• The removal of any unfair late fees.
• Correction of any negative data shared with credit reference agencies.
• Compensation for distress and inconvenience if the provider has handled the situation poorly.

What if the BNPL provider does not respond?

Keep a record of everything. If you use a webform, take a screenshot. If you email, keep the sent receipt.

BNPL providers must follow formal complaint-handling procedures. They generally have up to eight weeks to resolve the issue or issue a 'deadlock letter' (a final response stating they cannot agree on a resolution).

With the new FCA regulations coming into force in July 2026, your ultimate safety net is the Financial Ombudsman Service (FOS) [1] [2]. The FOS is a free, independent service that settles disputes between consumers and financial businesses [5]. If the BNPL provider fails to resolve your complaint within eight weeks, or if you are unhappy with their final response, you can escalate the case to the FOS. The Ombudsman has the power to order the provider to put things right, which can include refunds and compensation [5].

Common mistakes that weaken BNPL complaints

1. Ignoring the retailer: BNPL providers are payment processors. If the issue is a faulty product, you must show you tried to resolve it with the retailer first.

2. Stopping payments without notifying the provider: Simply cancelling your direct debit without formally disputing the charge can lead to late fees and damage your credit score. Always formally request a payment pause.

3. Relying on phone calls: Phone calls leave no paper trail. Always follow up a call with a written email summarising what was agreed.

4. Giving up too early: Companies rely on consumers getting frustrated and dropping the issue. Be persistent and use the escalation routes available to you.

Make your complaint letter difficult to ignore

Customer service teams process thousands of messages a day. A vague, emotional email is easy to delay. A structured, evidence-backed formal complaint letter is much harder to ignore.

LetterForce can help you draft a professional, legally sound complaint letter in minutes. Our automated service structures your problem, references the correct consumer rights, and clearly states the remedy you are seeking. Whether you are fighting a refused refund, challenging an unfair late fee, or dealing with a faulty product bought on finance, a strong written record is your best defence.

Generate your BNPL complaint letter with LetterForce →

References

[1] FCA. "New protections confirmed for Buy Now Pay Later borrowers." Financial Conduct Authority. Accessed June 12, 2026. https://www.fca.org.uk/news/press-releases/new-protections-confirmed-buy-now-pay-later-borrowers

[2] Credit Strategy. "BNPL comes under UK regulation from July 2026: What shoppers and merchants need to know." Credit Strategy. Accessed June 12, 2026. https://www.creditstrategy.co.uk/cs-regulation/regulation/bnpl-comes-under-uk-regulation-from-july-2026-what-shoppers-and-merchants-need-to-know

[3] GOV.UK. "Accepting returns and giving refunds: the law." GOV.UK. Accessed June 12, 2026. https://www.gov.uk/accepting-returns-and-giving-refunds

[4] MoneyHelper. "Section 75 and chargeback protection." MoneyHelper. Accessed June 12, 2026. https://www.moneyhelper.org.uk/en/everyday-money/credit/how-youre-protected-when-you-pay-by-card

[5] Financial Ombudsman Service. "How to complain." Financial Ombudsman Service. Accessed June 12, 2026. https://www.financial-ombudsman.org.uk/consumers/how-to-complain

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