FCA announces lenders to pay up to £47m to struggling borrowers – comment

“With a fifth of consumers (21%) reliant on credit for everyday expenses, there is a clear need for a change of approach across the finance sector. Organisations must begin to adopt a more outcomes-based approach if they wish to truly support borrowers facing financial difficulty – focused on vulnerability as well as affordability.

“Two thirds (67%) of lenders acknowledge that the lending sector will need total reform if it is to truly prioritise borrowers’ financial health over profit. The new Consumer Duty regulations represent a promising first step – however it is essential that banks and other financial institutions are well supported with the technology and the expertise needed to successfully adapt to these rules if they are to boost customer protections. Transforming finance to ensure consumer interests come first will play an important role in facilitating more personal financial products that are suited towards the needs of the consumer, reducing risks of defaults and  long-term debt and instead promote a fairer financial system for millions across the UK.”

Sho Sugihara, CEO and Co-Founder of Fuse