FCA encourages account providers to do more to support vulnerable customers

4th Sep 2024 12:34

(Sharecast News) - Financial watchdog The Financial Conduct Authority has encouraged account providers to do more to support those who want a bank account but don't have one, such as working with homeless charities to tailor their support to the needs of customers in vulnerable circumstances.

The FCA found that several providers could make it easier to apply for a simple account and has asked account providers to review their overall approach to denials and closures - and particularly to ensure that vulnerable consumers aren't losing out.

Where accounts have been closed or denied, the regulator also reminded providers that they should act in line with their obligations under the Consumer Duty, including communicating with customers in a "clear and helpful" way.

Sheldon Mills, executive director of consumers and competition at the FCA, said: 'We've seen examples of really good practice - with account providers helping people access a product vital for financial inclusion - but also areas where there is room for improvement. By sharing both, we want to achieve more consistent outcomes, with people being aware of what accounts there are that might be right for them, more support for the vulnerable and people not being denied access without good reason."

Reporting by Iain Gilbert at Sharecast.com