The Financial Conduct Authority (FCA) has published commissioned consumer research alongside a review of firms’ treatment of customers in vulnerable circumstances, including good and poor practice examples, to support delivery of the Consumer Duty. The research finds that only 42% of customers in vulnerable circumstances have disclosed personal circumstances to their financial services provider, even though those who do disclose tend to report better experiences. Vulnerable customers were more likely than non-vulnerable customers to report a negative experience with a financial services firm (44% versus 33%). Among vulnerable customers who told their firm about their circumstances, 74% said staff asked the right questions to understand their situation, 57% said their firm cared, and 58% said their firm took action to provide the support they needed. Of those who disclosed, 19% said they were encouraged to do so by the firm and 22% said it felt necessary given their circumstances, while 25% said they feel uncomfortable explaining their situation; cited reasons for not disclosing included embarrassment (37%), not wanting to be treated differently (24%), worries about getting a worse deal (23%), not knowing the firm would help (19%), and security concerns (16%).
Financial Conduct Authority 2025-03-07
UK Financial Conduct Authority publishes review and good-practice examples after research finds only 42% of vulnerable customers disclose their needs
The Financial Conduct Authority (FCA) published research on firms' treatment of customers in vulnerable circumstances, revealing that only 42% disclose their situations to financial services providers. Vulnerable customers reported more negative experiences than non-vulnerable ones, but those who disclosed generally had better interactions. Reasons for non-disclosure included embarrassment, fear of differential treatment, and security concerns.