Financial service sector companies will face the largest rule change in decades to ensure customers are treated better.
Whether it be making a complaint, accessing better savings rates or working out insurance costs, the Financial Conduct Authority’s Consumer Duty will aim to see consumers treated more fairly.
“The duty raises the bar across all corners of finance,” FCA consumer director Nisha Arora commented.
“[It] will ensure firms equip their customers with information they can understand, services they need and the right support when they need it.”
Some 60,000 companies under the FCA’s watch will face stricter rules from today as the new duty is introduced, having had a year to prepare for the change.
The time taken for complaints to be heard and acted upon should be slashed as firms are required to put customers “first”.
Lenders will also have to inform savers of better deals with higher interest rates, while more support will be offered to those struggling to pay mortgages.
“Unjustified” fees from banks will be banned and insurers made to detail how premiums are calculated too under the sweeping reforms.
“Where we see fees or charges based on nothing, or products that have no value to them, or excessive fees […] those are the things that will attract our attention,” Arora added.
“We have been tracking those who are not ready or may not be ready and we will therefore be poised to take action and deal with firms who are not compliant.”