One year on Consumer Duty remains ‘work in progress’

By automotive-mag.com 2 Min Read

A new survey reveals 41% of customers have not noticed any changes to their treatment since Consumer Duty obligations were introduced by the Financial Conduct Authority in July 2023.

But 42% believe that Consumer Duty will have a positive impact on the quality and range of products and services available, according to the research from fintech firm Motorhub.

The research, which polled 2,000 UK consumers, found that only a fifth (22%) said they have already noticed improvements in how they are treated as customers since Consumer Duty regulations came into effect.

However, when asked about improvements to customer outcomes, 13% said firms have failed to deliver good quality support and after-sales care, while 12% said firms have failed to deliver communications that help them to make effective financial decisions. 10% felt firms failed to offer suitable products and services that meet their needs.

Over two-fifths (42%) believe that Consumer Duty will have a positive impact on the quality and range of products and services and 36% think that Consumer Duty will drive banks to become more customer-centric institutions.

By 31st July 2024, FCA-regulated companies will have to review closed products and services against all aspects of the Duty.

Dan Scholey, COO of Moneyhub, said: “Consumer Duty really should be a win for both businesses who want to work more efficiently and effectively as well as consumers who need more tailored solutions at affordable prices.”

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