DivideBuy Unaffordable Lending 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.
DivideBuy is a UK retail finance brand that allows customers to spread the cost of larger purchases — typically furniture, electronics, appliances and similar — over monthly instalments at the merchant’s checkout. Following its acquisition by Zopa in February 2023, DivideBuy now operates as a trading name of Zopa Bank Limited. This page sets out where complaints stand for both pre- and post-acquisition lending.
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About DivideBuy
DivideBuy was founded in 2012 in Newcastle-under-Lyme. It built up substantial UK merchant integrations over the following decade, particularly in higher-ticket retail (furniture, beds, appliances). In February 2023, DivideBuy was acquired by Zopa, the UK fintech bank, and now operates as a trading name of Zopa Bank Limited.
Current regulatory status:
- Zopa Bank Limited is authorised by the Prudential Regulation Authority and regulated by the FCA and PRA, FRN 800542.
- DivideBuy’s interest-free credit agreements that are 12 months or less in duration sit outside the scope of the Consumer Credit Act (the BNPL exemption — same as Klarna Pay in 3 and Clearpay).
- DivideBuy’s longer-term retail finance products (over 12 months) are regulated consumer credit subject to CONC.
Regulatory position by product
Interest-free retail finance — 12 months or less
Currently classified as deferred payment credit (DPC). Under the BNPL exemption, this has been outside the Consumer Credit Act and outside FOS’s compulsory jurisdiction. From 15 July 2026, DPC offered by third-party lenders becomes regulated. Zopa Bank, as the FCA-authorised entity behind DivideBuy, is well-positioned to comply.
Retail finance — longer than 12 months
Regulated consumer credit. Subject to CONC 5.2A creditworthiness rules. Where the original lending was unaffordable, the standard complaint process applies — complaint to Zopa Bank, eight-week response window, escalation to FOS if needed.
Where complaints stand
For DivideBuy lending, the route depends on the product type and date:
- Long-term DivideBuy retail finance (over 12 months) — fully regulated. Standard CONC and FOS route applies. Complaints can be brought against Zopa Bank Limited as the now-current operator (or the original DivideBuy entity for pre-2023 lending, with Zopa Bank handling).
- Short DivideBuy BNPL agreements (12 months or less) from 15 July 2026 — regulated. Standard route applies.
- Short DivideBuy BNPL agreements (12 months or less) before 15 July 2026 — unregulated. Standard CONC route does not apply, and FOS compulsory jurisdiction does not cover the activity. Section 140A and other routes may be available depending on facts.
Common patterns
DivideBuy’s focus on higher-ticket retail (furniture, electronics, appliances) means complaints have tended to involve larger amounts than the typical Pay-in-3 BNPL. Issues that have arisen:
- Affordability checks not proportionate to the size of the credit — particularly for larger purchases over longer terms.
- Customers in financial difficulty using DivideBuy to spread the cost of essential household items they couldn’t otherwise afford, with the lender not factoring this into the assessment.
- Multiple DivideBuy or other-lender BNPL agreements running concurrently.
- Late fees and interest applied to missed payments where forbearance should have been considered.
How a claim works (regulated DivideBuy lending)
- Eligibility check on the credit, when it was opened, your circumstances at the time.
- Subject Access Request to Zopa Bank covering the DivideBuy lending.
- Bank statements and statutory credit report for the affordability picture.
- Complaint to Zopa Bank — eight-week response window applies.
- Escalation to the Financial Ombudsman if the response is unsatisfactory.
- Redress if successful — refund of interest and charges (where applicable), 8% statutory interest, credit-file correction.
Frequently asked questions
My DivideBuy lending was before Zopa acquired them — can I still complain?
Yes. The acquisition transferred the loan book and ongoing servicing to Zopa Bank, which is responsible for handling complaints about historic DivideBuy lending. The substantive affordability question is the same as for any other regulated lending, and the time limits run from the original lending event in the normal way.
Does Section 75 apply?
For regulated DivideBuy retail finance (typically the longer-term products), yes — Section 75 gives joint and several liability with the merchant for purchases over £100 that are faulty, undelivered or misdescribed. For the short-term BNPL products, Section 75 has not applied historically but will apply from 15 July 2026.
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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