Customers ‘not seeing the impact’ of Consumer Duty one year on

Over four in five (84%) consumers have reported no improvement in how financial providers treat them following the implementation of Consumer Duty by the Financial Conduct Authority (FCA) last year, Smart Money People has reported.

Consumer Duty was introduced in July 2023 in order to set out requirements for firms to follow to deliver good outcomes for their customers, while providing support to vulnerable consumers.

The firm’s study, which put questions to 2,000 people and is part of its Your Money, Your Voice campaign, also revealed that 7% of consumers report worsening levels of service in the past 12 months.

Consumers’ biggest frustrations are having no access to human support (48%), untrained staff (34%), no available phone number (32%) and an over-reliance on chatbots (24%).

Despite these grievances, just 23% of customers have left a review for their provider in the past 12 months and only 35% said they have given feedback directly to their provider in the past five years, suggesting their negative experiences not being recorded.

Personal loan and buy now, pay later customers were the least satisfied with the service they have received, with other reasons including over-reliance on live chats (30%) and poor customer communications (28%).

An additional fifth (22%) of people had expressed unempathetic staff members too.

Chief executive officer at Smart Money People, Jacqueline Dewey, said: "The FCA’s Consumer Duty guidelines are specifically designed to put the onus of consumer communications and outcomes on the provider. However, our data shows customers are not seeing the impact of these guidelines 12 months later.

"It’s particularly concerning that vulnerable customers have not seen an improvement in their experience during this time. This is why we are encouraging consumers to feedback on both good and bad experiences. Smart Money People works with financial services organisations to better understand and serve their customers, helping to drive better outcomes for both providers and their customers."



Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.

Air and the role of later-life lending
Content editor at MoneyAge, Dan McGrath, spoke to the chief executive officer at Air, Will Hale, about the later-life lending industry, the importance of tailored advice and how technology and obligations have shaped the sector.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.