Posted 18 October 2023
Introducing the new FCA (financial conduct authority) Consumer Duty
This was on rip-off Britain the other day. Thought I would post it here, to make everyone aware of it.
Introduced in July 2023 the Financial Conduct Authority’s (FCA’s) new Consumer Duty rules mean that firms selling financial products now have to meet much higher standards. This means consumers dealing with any firm or product regulated by the FCA have a new route to super-charging complaints and hopefully resolving disputes.
Most importantly the so-called burden of proof for a complaint has shifted: Consumers no longer have to show a business in in the wrong, but rather the business has to show it was in the right.
What is Consumer Duty?
The Consumer Duty rules set new requirements on all firms selling products regulated by the FCA. There are four key rules they must abide by for the business to show they are being open and honest, avoiding causing foreseeable harm, and offering support you to pursue your financial goals. You should expect:
1. helpful and accessible customer support, so it's as easy to sort out a problem, switch or cancel your product, as it was to buy it in the first place
2. timely and clear information you can understand, so you can make good financial decisions. This means important information shouldn’t be buried in lengthy terms and conditions
3. providers to offer products and services that are right for you, rather than pushing products and services you don’t need
4. products and services to provide fair value. This should mean you won’t be ripped off or have to pay costs you didn’t expect. But while your provider should offer you a fair price, it doesn't mean it will be the best deal for you, so you should still shop around.
Also, businesses regulated by the FCA need to consider if you are in a vulnerable situation when dealing with you. This could be due to poor health or existing financial troubles
We think the new rules are fantastic, because it means that lots of things we’ve campaigned for on the show over the years should now be much easier to get sorted out. Including:
• Mis-sold financial products
• Unfair exit fees
• Complaints rejected because of unfair or unclear T&Cs
• Accessible phone lines and customer service improvements
• Unfair pricing of financial products (eg better rates ‘online’).
• Support for vulnerable people struggling financially.
What firms are covered?You can find a full list of regulated financial products here in the Financial Ombudsman’s annual complaints data (scroll to ‘the full data set’) financial-ombudsman.org.uk/dat…223
But it is not just banks, building societies, pension providers and insurance companies. The FCA also regulate Funeral Plans and many loan agreements for products as diverse as cars, whitegoods and even new beds or other household goods!
What can you do?
If you feel you have been treated unfairly by an FCA regulated business, ask them to show how they complied with the Consumer Duty in all their dealings with you. Remember they now have to prove they treated you fairly and did all they could for you, rather than you having to show they were in the wrong.
As ever, if you fail to resolve your dispute you can refer your case to the Financial Ombudsman Service for them to review.
Introduced in July 2023 the Financial Conduct Authority’s (FCA’s) new Consumer Duty rules mean that firms selling financial products now have to meet much higher standards. This means consumers dealing with any firm or product regulated by the FCA have a new route to super-charging complaints and hopefully resolving disputes.
Most importantly the so-called burden of proof for a complaint has shifted: Consumers no longer have to show a business in in the wrong, but rather the business has to show it was in the right.
What is Consumer Duty?
The Consumer Duty rules set new requirements on all firms selling products regulated by the FCA. There are four key rules they must abide by for the business to show they are being open and honest, avoiding causing foreseeable harm, and offering support you to pursue your financial goals. You should expect:
1. helpful and accessible customer support, so it's as easy to sort out a problem, switch or cancel your product, as it was to buy it in the first place
2. timely and clear information you can understand, so you can make good financial decisions. This means important information shouldn’t be buried in lengthy terms and conditions
3. providers to offer products and services that are right for you, rather than pushing products and services you don’t need
4. products and services to provide fair value. This should mean you won’t be ripped off or have to pay costs you didn’t expect. But while your provider should offer you a fair price, it doesn't mean it will be the best deal for you, so you should still shop around.
Also, businesses regulated by the FCA need to consider if you are in a vulnerable situation when dealing with you. This could be due to poor health or existing financial troubles
We think the new rules are fantastic, because it means that lots of things we’ve campaigned for on the show over the years should now be much easier to get sorted out. Including:
• Mis-sold financial products
• Unfair exit fees
• Complaints rejected because of unfair or unclear T&Cs
• Accessible phone lines and customer service improvements
• Unfair pricing of financial products (eg better rates ‘online’).
• Support for vulnerable people struggling financially.
What firms are covered?You can find a full list of regulated financial products here in the Financial Ombudsman’s annual complaints data (scroll to ‘the full data set’) financial-ombudsman.org.uk/dat…223
But it is not just banks, building societies, pension providers and insurance companies. The FCA also regulate Funeral Plans and many loan agreements for products as diverse as cars, whitegoods and even new beds or other household goods!
What can you do?
If you feel you have been treated unfairly by an FCA regulated business, ask them to show how they complied with the Consumer Duty in all their dealings with you. Remember they now have to prove they treated you fairly and did all they could for you, rather than you having to show they were in the wrong.
As ever, if you fail to resolve your dispute you can refer your case to the Financial Ombudsman Service for them to review.
Community Updates
12 Comments
sorted byMaybe they aren't doing as much as they should but maybe that money cannot be recovered but their actions have bankrupted numerous companies & resulted in billions being paid out/recovered (edited)
Could that be because someone complained about a car leasing deal or zero percent credit card?