[INSIGHTS]: Rising Cost of Living – Joint Regulatory Dear CEO letter

External Links:

https://ukrn.org.uk/app/uploads/2023/06/joint-CEO-letter-publication_280623.pdf

Summary

The UK’s financial regulators have set shared expectations across regulated sectors to ensure that firms are supporting customers in financial difficulty. The regulators expect firms to consider the customer’s situation, proactively raise awareness of support available, make it easy for customers to get the support they need, tailor support to the customer’s circumstances, and make referrals and provide information at the right time so customers can access advice and support that meets their needs.

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Key Points

  • UK regulators have set shared expectations across regulated sectors to ensure that firms are supporting customers in financial difficulty.
  • The regulators expect firms to consider the customer’s situation, proactively raise awareness of support available, make it easy for customers to get the support they need, tailor support to the customer’s circumstances, and make referrals and provide information at the right time so customers can access advice and support that meets their needs.
  • The regulators want firms to show restraint on pricing and pass on any relevant reductions as soon as possible.
  • The support measures outlined by the regulators are essential tools to help customers avoid falling into debt or provide support when they are in debt.
  • The regulators are committed to working together to ensure they have a joined-up view across different sectors and that they understand the consumer’s perspective.
  • The regulators will consider what their shared expectations are in relation to debt collection across different sectors.
  • FCA research in January 2023 indicates 11% (5.6 million) of UK adults have missed payments on any domestic bills or any of their credit commitments in 3 or more of the previous 6 months.
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Key Statistics

  • FCA research in January 2023 indicates 11% (5.6 million) of UK adults have missed payments on any domestic bills or any of their credit commitments in 3 or more of the previous 6 months.

Key Take Aways

  • UK regulators have set shared expectations across regulated sectors to ensure that firms are supporting customers in financial difficulty.
  • Firms are expected to consider the customer’s situation, proactively raise awareness of support available, make it easy for customers to get the support they need, tailor support to the customer’s circumstances, and make referrals and provide information at the right time so customers can access advice and support that meets their needs.
  • The regulators want firms to show restraint on pricing and pass on any relevant reductions as soon as possible.
  • The support measures outlined by the regulators are essential tools to help customers avoid falling into debt or provide support when they are in debt.
  • The regulators are committed to working together to ensure they have a joined-up view across different sectors and that they understand the consumer’s perspective.
  • The regulators will consider what their shared expectations are in relation to debt collection across different sectors.
  • FCA research in January 2023 indicates that a significant number of UK adults have missed payments on any domestic bills or any of their credit commitments in 3 or more of the previous 6 months.
  • The shared expectations set by the regulators will benefit consumers dealing with multiple payments across multiple regulated sectors.
  • Firms are expected to tailor support to the customer’s circumstances, including their ability to pay and whether they are in vulnerable circumstances.
  • The regulators want firms to make it easy for customers to get the support they need, for example by providing different channels for customers to get in touch.
  • The regulators want firms to proactively raise awareness of the support available to consumers.
  • The regulators want firms to monitor customer outcomes and take action to put things right if they go wrong.
  • The regulators are committed to continuing to work together to ensure they have a joined-up view across different sectors and that they understand the consumer’s perspective.
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