Clearpay Unaffordable Lending and BNPL Affordability Complaints
A note before you start (5 August 2026): most BNPL lending only became FCA-regulated on 15 July 2026. For agreements taken out before that date the routes to a claim are limited — the affordability rules and the Financial Ombudsman's compulsory jurisdiction did not apply to BNPL activity (Zilch, regulated since 2020, is the exception). We are confirming with our claim partner exactly which BNPL agreements they can take on, and will update these pages once that is settled. Until then, please treat these pages as guidance on where complaints stand rather than an invitation to claim on a pre-regulation agreement.
Clearpay is the UK brand of Afterpay, the global “Pay in 4” Buy Now Pay Later operator owned by Block, Inc. (formerly Square). Like other major BNPL providers, Clearpay’s short-term interest-free instalment product currently sits outside the Consumer Credit Act, but comes under FCA regulation from 15 July 2026 for new agreements. This page explains where complaints about Clearpay stand for both pre- and post-Regulation Day lending.
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About Clearpay
Clearpay launched in the UK in 2019 as the local version of Afterpay, which had become a major BNPL operator in Australia and the US. Following Block Inc.’s acquisition of Afterpay in early 2022, Clearpay UK operates as part of the wider Block group. Its core product is Pay in 4 — splitting a purchase into four equal instalments paid every two weeks, with no interest charged when payments are made on time. Late fees apply to missed payments.
Clearpay has built up extensive UK retailer integrations across fashion, beauty, lifestyle and homewares, and is one of the four largest BNPL providers in the UK alongside Klarna, PayPal Pay in 3 and Zilch.
Regulatory position
Clearpay’s Pay in 4 product is currently classified as deferred payment credit (DPC) — interest-free credit repayable in 12 or fewer instalments over 12 months or less. From 15 July 2026 (Regulation Day), DPC offered by third-party lenders becomes a regulated activity under the FCA’s policy statement PS26/1. Clearpay, like other major BNPL operators, will need to be either fully authorised or hold a Temporary Permissions Regime registration to continue lending after that date.
For agreements taken out before Regulation Day, the activity remains unregulated, so the standard CONC and FOS framework does not apply to those agreements. From Regulation Day onwards, CONC 5.2A creditworthiness rules apply, FOS’s compulsory jurisdiction extends to DPC, and Section 75 of the Consumer Credit Act applies.
Where complaints stand
Clearpay agreements from 15 July 2026 onwards
These will be regulated under the standard framework. Reasonable and proportionate creditworthiness assessments will be required. If lending is found unaffordable, the standard complaint route applies — complaint to Clearpay, eight-week response window, escalation to FOS if needed.
Clearpay agreements before 15 July 2026
Pre-Reg-Day agreements remain unregulated. The CONC framework does not apply, and the FOS compulsory jurisdiction over the activity does not apply. Where a complaint is made anyway, Clearpay may consider it under its own complaints process and voluntary standards, but there is no compulsory route. Section 140A of the Consumer Credit Act and common-law principles can still apply in some circumstances, but the practical landscape is narrower.
Patterns of concern with Clearpay-style BNPL
The FCA’s scrutiny of BNPL focuses on issues that apply across all major operators, including Clearpay:
- Multiple parallel BNPL agreements running across different providers, with no single view of total exposure.
- Late fees accumulating quickly on small balances, particularly where customers were already financially stretched.
- Younger and lower-income customers using BNPL as a substitute for affordable mainstream credit.
- Limited visibility on credit reference agency files historically — though this has been improving across the BNPL sector since 2023.
- Vulnerability indicators not identified or acted on.
Late fees and arrears
Clearpay charges late fees on missed payments — typically £6 with further fees if the missed payment continues, capped per purchase. Persistent missed payments may be referred to a debt collection agency and can affect your credit file. Where the original agreement should not have been entered into because the affordability assessment (where one was carried out) was inadequate, the late fees are part of the redress picture if the complaint succeeds.
How a claim works (post-Regulation Day)
For agreements from 15 July 2026 onwards:
- Eligibility check — review of the agreements, when they were taken, your circumstances at the time.
- Evidence gathering — Subject Access Request to Clearpay, bank statements showing the BNPL pattern alongside other commitments, statutory credit report.
- Complaint to Clearpay — eight-week response window.
- Escalation to the Financial Ombudsman if the response is unsatisfactory.
- Redress if successful — refund of fees and charges paid (BNPL is interest-free so no interest refund), 8% statutory interest, credit-file correction.
Frequently asked questions
Was Clearpay regulated before July 2026?
No — Clearpay’s Pay in 4 product was specifically excluded from the Consumer Credit Act. Block Inc.’s wider UK operations may hold separate FCA authorisations for other activities, but the Pay in 4 BNPL itself was unregulated until Regulation Day.
Can I claim about my Clearpay BNPL from 2024 or 2025?
The standard CONC and FOS route does not apply to pre-Reg-Day BNPL agreements. Specific advice on the particular facts is sensible — there may be other routes available depending on the situation.
Does Section 75 cover my Clearpay purchase?
Not for purchases made before 15 July 2026. From Regulation Day, Section 75 will apply to DPC agreements, giving joint and several liability between Clearpay and the merchant for faulty or undelivered goods.
Related guides
- BNPL and the new FCA rules from July 2026
- Buy Now Pay Later claims hub
- The CONC rules on affordability
- How the Financial Ombudsman handles unaffordable lending complaints
- Do I have an unaffordable lending claim?
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