Check If You Qualify

Finance Firms told They Must Do More to Help Vulnerable Debtors

Sharon McDougall - 30th July 2020 - 2 minutes to read

Financial service companies have been told by their industry’s chief regulator that they need to do more to provide support to customers who are struggling with debt.

The Financial Conduct Authority (FCA) has drafted a series of best practice guidelines making clear that it wants companies to recognise more readily when their customers are in difficulty and to focus on actively helping them rather than adding to their problems.

The FCA has said that while some lenders deal carefully and properly with customers in trouble, others don’t even consider whether their borrowers are vulnerable or not, or they actively seek to exploit those vulnerabilities for their own financial gain.

It is estimated that more than 24 million people across the UK show one or more sign of being in a position of material vulnerability, with coronavirus having worsened the financial circumstances of many hundreds of thousands of Brits in recent months.

A key part of what the FCA wants to see from financial services providers is an ability to recognise when their customers are struggling and a willingness to provide support to people in those situations.

Beyond that, companies are also being asked to understand the value of sympathy in these contexts, to empower their staff to help people more directly and to appreciate that some vulnerable customers will have specific communications needs that ought to be recognised.

“Supporting vulnerable consumers is a key focus for the FCA, and the coronavirus crisis has only highlighted its importance,” said Christopher Woolard, the FCA’s interim chief executive.

“While many firms do excellent work to support their vulnerable customers, we will not hesitate to step in where others do not.”

Responding to the FCA’s draft best practice guidelines, Peter Tutton from the debt help charity StepChange agreed that coronavirus has sharply increased the number of people with problem debts but insisted that the government needs take the lead in helping those who are struggling the most.

“For the most vulnerable in our society currently struggling with rent, council tax or bailiff enforcement, the months ahead are filled with uncertainty - the government must ensure the safety nets are in place to help them,” he said.

facebook colour icon twitter colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Sharon McDougall Square

Sharon McDougall


Other News

Debt Levels Soaring across Scotland, New Figures Show Debt Level Rising

Debt Levels Soaring across Scotland, New Figures Show

Levels of unsecured debt in Scotland increased dramatically during 2022 as the cost of living crisis took its toll on household finances.

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’ Financial Hardship

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’

Close to half a million Scots are in a position of profound financial hardship, according to a new set of figures.

Scots with Disabilities Urged to Check Eligibility for New Benefits Scottish Man In Wheelchair

Scots with Disabilities Urged to Check Eligibility for New Benefits

Disabled people in Scotland are being urged by the government to check whether they might be eligible for benefits that could help make their life a little easier.


Why Choose Us

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Hand Heart

Helping Scots Get

Out of Debt Since 1989

Usp Handshake

We offer an

Instant Initial Consultation

Usp Palm Wallet

We'll Help You

Lower Monthly Payments

Usp Hand Heart


Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.


Useful tools

Personalised Debt Report
Usp Planner

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Debt Report
Instant Scheduled Call & WhatsApp

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Find an Office

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners