LONDON (Reuters) – Britain’s financial watchdog told firms on Tuesday to improve how they interact with customers to offer help faster in a cost of living crisis as tougher consumer protection rules come into force next week.
The Financial Conduct Authority (FCA) said its Financial Lives survey found that 7.4 million people unsuccessfully tried contacting their financial services providers during the 12 months before May 2022.
“While there have been positive steps taken, there is still work to do, 4.9 million people who used firm communications to help them make a decision in the 12 months before May 2022 found it did not help at all,” the FCA said in a statement.
The FCA rolls out its new “consumer duty” next Monday, requiring firms regulated by the watchdog to demonstrate how they ensure good outcomes for customers, including helpful and responsive customer service, useful communications, and fair value for money on products.
“While firms have stepped up to help millions of people navigate the cost of living crisis, we know that people showing signs of financial difficulty need help as early as possible to prevent them from becoming trapped in a spiral of harmful, unaffordable borrowing,” said StepChange, a charity that offers debt advice.
The survey found that less than half of UK adults, or 21.9 million people, had confidence in the financial services industry, and just 36% agreed that most financial firms are honest and transparent in the way they treat them.
It also found that 88% of adults banked online or by usdc, a mobile app, in 2022, up from 77% in 2017.
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