Automated Accounts Payable provider Glantus Holdings raises 14M and successfully floats on AIM. Watch the full video here.

Less Ads, More Data, More Tools Register for FREE

UK watchdog steps up scrutiny of how banks treat COVID-stressed consumers

Wed, 29th Jul 2020 13:58

By Huw Jones

LONDON, July 29 (Reuters) - Financial firms will face closer
scrutiny of how they deal with an expected rise in vulnerable
customers as COVID-19 relief measures are phased out after
October, Britain's Financial Conduct Authority (FCA) said on

The FCA published draft guidance setting out how firms
should treat customers facing financial, health or other
difficulties that make it harder for them to keep up with

The number of potentially vulnerable consumers has already
risen by 1.5 million since the pandemic started, to total 25.5
million, or about half of UK adults, the FCA says.

Numbers are likely to rise further as mortgage and credit
card payment holidays granted by banks come to an end in the
autumn, along with furlough schemes that have kept people off
the dole queue for now.

Nisha Arora, the FCA's director of retail, said the
guidance, due to formally come into effect by early 2021,
fleshes out existing principles that require firms to treat
their customers fairly.

Work on the guidance was already underway but has been made
more urgent by the pandemic. The proposals are open to industry
consultation through September.

"A lot of this is about saying to firms to pre-empt problems
and we will be holding firms to account," Arora told Reuters.

"Firms should be doing this right now, this gives them
greater clarity on our expectations. I don't think firms should
be waiting on this one."

Firms should not wait to be contacted if they spot problems
emerging such as missed payments and should respond flexibly and
not constantly be using automated responses, she said.

"This draft guidance will provide a practical framework to
help identify vulnerable customers and ensure they receive the
best possible support," said Eric Leenders, managing director of
personal finance at UK Finance, Britain's banking industry body.
(Reporting by Huw Jones
Editing by David Holmes)

More News

UPDATE 1-Santander says all UK services working again after technical difficulties

(Adds latest statement)LONDON, May 15 (Reuters) - Santander told UK customers that all of its banking services were back up and running late on Saturday after technical problems stopped cash withdrawals and online account access for much of the da...

15 May 21 21:29

Soccer-Spotify founder Ek says his bid for Arsenal was rejected

LONDON, May 15 (Reuters) - Spotify CEO and founder Daniel Ek said on Saturday an offer to buy Premier League Arsenal had been rejected by owner Stan Kroenke's family.Ek took to Twitter to issue a statement correcting "inaccurate reports" that he had ...

15 May 21 20:44

Britain reports 2,027 new COVID-19 cases, seven deaths

LONDON, May 15 (Reuters) - Britain reported 2,027 new COVID-19 infections on Saturday, as well as a further seven deaths within 28 days of a positive test.The official data also showed that 36.32 million people had received their first dose of a C...

15 May 21 18:03

Santander says technical difficulties affecting UK customers

LONDON, May 15 (Reuters) - Santander told UK customers on Saturday a technical problem was affecting its services, stopping people from withdrawing funds from some of its cash machines and from logging onto their accounts online.The bank has 14 mi...

15 May 21 14:45

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.