From 15 July 2026, the market is catching up to regulated credit
From 15 July 2026, short-term interest-free credit becomes regulated under the FCA’s new Deferred Payment Credit (DPC) framework.
As your lending partner, we have operated under FCA regulation since day one. This isn’t a disruption for us, or for you.
Most of the compliance responsibility sits with us as the lender. You have a small number of practical actions to take, and we’ll guide you through each of them.
Quick links
- 👉 View FAQs
- 👉 Contact us - merchantsupport@zopa.com
What is Deferred Payment Credit (DPC)?
Deferred Payment Credit (DPC) is the FCA’s formal name for interest-free, short-term retail finance.
Specifically, it covers credit that is:
- Repaid in 12 or fewer instalments
- Completed within 12 months or less
- Provided by a third-party lender at the point of sale
You don’t need FCA authorisation to offer DPC
One of the most common questions is whether retailers need to become FCA regulated.
You do not need FCA authorisation.
The broking of DPC agreements is explicitly exempt from regulation. You do not need to:
- Register with the FCA
- Apply for permissions
- Take steps to maintain authorisation
The only area that needs to be FCA-authorised is Zopa as the lender, which we already are.
Five areas of change and what matters for you
The FCA’s final rules introduce five key areas of change. Here’s what they mean in practice.
1. Affordability assessments
Affordability checks will now formally apply to all DPC agreements, regardless of value.
As an FCA-regulated lender, we already carry out credit assessments. This change formalises how affordability is:
- Assessed
- Documented
- Applied to each application
The FCA supports a proportionate approach for lower-value, short-term credit.
What this means for you:
We do not expect any material impact on approval rates. We’ll share insights with you as we monitor performance.
2. The term ‘unregulated’ is being retired ⚠️ Action required
From 15 July 2026, DPC becomes a regulated activity. Describing finance as “unregulated credit” will no longer be compliant.
This is the most immediate action required from you.
The good news:
- The customer experience stays the same
- Customers will benefit from additional regulated protections
What you need to do:
Update any customer-facing references to “unregulated credit” across:
- Website content
- Checkout messaging
- Marketing materials
We’ll provide:
- Copy guidance
- Approved wording
- Ready-to-use assets
3. New pre-contract disclosures at checkout (we handle this)
Customers will see additional information before entering into a DPC agreement.
This includes:
- Key product information
- Repayment details
- Consequences of missed payments
- The 14-day withdrawal right
We will:
- Build and manage all required disclosures
- Update the checkout flow
What this means for you:
You do not need to build anything. You may notice small presentation changes in your checkout.
4. Financial Ombudsman & agreement updates ⚠️ Action required
From 15 July 2026:
- Customers can escalate complaints to the Financial Ombudsman Service (FOS)
- Regulated agreements include Consumer Credit Act protections, including Section 75 and other applicable protections, such as Sections 56 and 140A where applicable..
- Customers gain a 14-day withdrawal right
Your merchant agreement will be updated to reflect these changes.
What you need to do:
You do not need to sign a new merchant agreement. You'll have 10 business days to consider any updated terms we need to make. You don't have to do anything if you're happy with the changes, they'll automatically take effect at the end of the 10 business days.
5. Late fees and customer outcomes
The regulation introduces stricter rules on late fees, requiring them to be cost-reflective.
Some providers may need to change their approach.
Zopa position:
We have never charged late fees — and will not start now.
What this means for you:
- No action required
- You can confidently highlight this in customer messaging
FAQs
Find answers to common questions, including:
- Do I need FCA authorisation?
- Will approval rates change?
- What changes in the customer journey?
- What do I need to update?
- What is Section 75?
Need help?
If you have any questions, please:
- Speak to support (merchantsupport@zopa.com)
- Or your Account Manager where applicable.
Updates
We’ll continue to share updates, guidance, and assets here as we approach July 2026.