FCA directs firms to improve support for customers with cost of living challenges

The FCA is asking lenders to make improvements in their treatment of borrowers in financial difficulty, and asking firms across all sectors to improve the way they treat vulnerable customers. The regulator issued a Dear CEO letter to over 3,500 lenders on 16 June 2022, setting out its expectations for supporting customers affected by the rising cost of living. The letter details findings from ongoing work on the treatment of borrowers in financial difficulty, highlighting areas of concern. It also sets out the FCA’s first formal review of how firms have implemented its guidance on the treatment of vulnerable customers. This flags numerous areas for improvement, particularly on data and monitoring outcomes. 

Download this At a glance for a detailed analysis of these developments and what firms need to do.