Francis ArnoldThe Very Group, the UK's largest online clothing and electricals retailer with over 4.4 million customers, is at the centre of two major financial stories in March 2026: a planned £2 billion sale by new owner Carlyle, and the imminent regulation of Buy Now Pay Later schemes that will fundamentally change how millions of British shoppers borrow. From 15 July 2026, the FCA will regulate BNPL — and for the first time, consumers will have real legal protections.
The Very Group sale: what it means for shoppers
Carlyle, the American private equity firm that completed its acquisition of The Very Group in November 2025, is preparing a £2 billion auction of the business, with Barclays and JP Morgan understood to be overseeing the sale. The Very Group operates the Very and Littlewoods brands, generating over £2 billion in annual revenue.
For the millions of shoppers who use Very's Buy Now Pay Later or credit options, the question is simple: what happens to my credit agreement if the company is sold? The reassuring answer is that consumer credit contracts transfer with the business — your rights as a borrower are not extinguished when a retailer changes ownership. The new owner assumes the same obligations as the previous one under the Consumer Credit Act 1974.
A financial adviser can help you understand the terms of any existing credit agreement and what your options are, particularly if repayment terms change following a business sale.
Buy Now Pay Later: the regulatory revolution of July 2026
The bigger story for British consumers is the FCA's landmark decision to regulate Buy Now Pay Later from 15 July 2026. Until now, BNPL schemes — offered by Klarna, PayPal, Zilch, Clearpay, and embedded in retailers like Very — have operated outside the framework of the Consumer Credit Act, meaning shoppers had almost no legal recourse when things went wrong.
That changes this summer. According to the FCA, the new rules introduce four major protections:
1. Section 75 coverage for the first time. From July 2026, BNPL providers will be jointly liable with the retailer if a purchase between £100 and £30,000 goes wrong. Previously, this protection — standard for credit cards — was unavailable to BNPL users.
2. Access to the Financial Ombudsman Service. If you have a dispute with a BNPL provider and cannot resolve it directly, you will now be able to escalate your complaint to the Financial Ombudsman Service (FOS), an independent body that resolves disputes between consumers and financial firms.
3. Mandatory affordability checks. Lenders must now assess whether you can afford to repay before approving BNPL credit. Currently, most providers — including Klarna and Clearpay — only perform soft credit checks without any assessment of your ability to pay. The FCA confirmed this change following findings that many customers were unaware they were taking on debt.
4. Support for customers in difficulty. BNPL firms will be legally required to provide support to customers struggling with repayments and to signpost them to free debt advice services.
Who is most affected?
The FCA estimates that over 11 million people in the UK used BNPL in 2024, up from 5 million in 2020. Younger shoppers — particularly those aged 18 to 34 — are disproportionately likely to use BNPL, often without fully understanding the debt implications. Research by Which? found that 40% of BNPL users did not realise they were taking on debt when they clicked "pay later."
In the context of The Very Group's credit model, which has long offered instalment payments alongside BNPL, the new regulation means that shoppers who previously had limited recourse now gain significant legal standing.
What should you do before July 2026?
If you currently have outstanding BNPL balances with Very, Klarna, or any other provider, this is a good moment to review your situation. Here is what a financial adviser would typically recommend:
- List all BNPL balances across all providers. These do not always appear on standard credit reports, as many BNPL schemes currently bypass credit reference agencies.
- Understand interest and late payment charges. Some BNPL products charge retroactive interest on the full purchase amount if you miss a payment during the interest-free period.
- Check your credit file. From July 2026, BNPL lenders must report to credit reference agencies, meaning missed payments will affect your credit score. If you have unpaid BNPL debts, addressing them now avoids future credit damage.
- Know your refund rights. With Section 75 coming into force for eligible purchases, you will have stronger grounds to claim a refund if a product is faulty or a retailer fails to deliver.
The broader picture: consumer debt in 2026
The timing of BNPL regulation matters. UK household debt reached record levels in early 2026, driven in part by the cost-of-living pressures of recent years. The Bank of England's Financial Policy Committee noted in February 2026 that unsecured consumer credit — including BNPL — remains a vulnerability in household balance sheets.
The Very Group sale and the new FCA rules together signal a maturing of the online retail credit market. Whether you are a regular Very customer or a first-time BNPL user, understanding your rights under the new framework is essential.
For questions about your rights under the Consumer Credit Act, BNPL disputes, or financial planning ahead of the July 2026 changes, a qualified financial adviser or consumer law solicitor can provide tailored guidance. Visit the FCA's official guidance on Buy Now Pay Later regulation for further details.
Important notice: This article is for informational purposes only and does not constitute financial or legal advice. If you are experiencing difficulty with debt repayments, contact the Money and Pensions Service (MoneyHelper) or a regulated financial adviser.
