In a Consumer Duty update, the Financial Conduct Authority reminded firms to review how they support consumers facing rising living costs and financial difficulty, and to take timely action where foreseeable harm emerges. The FCA said firms should already have embedded the Duty and should actively monitor outcomes, particularly for customers in vulnerable circumstances, alongside complying with its existing protections for borrowers in difficulty. The FCA grouped its expectations around products and services, price and value, consumer understanding, and support. Products should still meet the needs of their target market as circumstances change, with credit and lending products giving customers timely access to support, clear referral triggers to specialist teams and temporary arrangements before arrears escalate. Firms should reassess fair value and, if a product no longer provides it, reduce charges, change the product or withdraw it from sale. Even where charges remain fair, the FCA encouraged flexibility where affordability is deteriorating, including lower insurance premiums, waived adjustment or cancellation fees, or temporary reduced payment plans. Communications should be tested so customers understand key terms, the consequences of inaction and available support, while support channels should avoid unreasonable friction, help customers agree repayment arrangements and signpost free debt advice. The FCA said it will continue to engage with firms and may use supervisory and enforcement powers where it sees poor outcomes or inadequate action. Firms should be able to evidence how they monitor outcomes, assess customers holistically across multiple products where relevant, and check whether their current approach remains appropriate in current conditions.
Financial Conduct Authority 2026-05-14
Financial Conduct Authority reiterates Consumer Duty expectations for firms supporting customers in financial difficulty
The Financial Conduct Authority issued a Consumer Duty update reminding firms to review how they support customers facing rising living costs and financial difficulty, and to act promptly where foreseeable harm emerges. It set expectations across products and services, price and value, consumer understanding and support, including reassessing fair value, adapting charges or products where affordability deteriorates, and ensuring clear communications and accessible support. The authority said it will continue to engage with firms and may use supervisory and enforcement powers where it identifies poor outcomes or inadequate action.