FCA finds 7.8 million Brits struggling with bills
The Financial Conduct Authority (FCA) has found 7.8 million people are finding it difficult to pay their bills, an increase of around 2.5 million people since 2020.
The regulator has published a snapshot of the latest edition of its Financial Lives survey, which was carried out between February and June 2022.
One in four UK adults are in financial difficulty or could quickly find themselves in difficulty if they suffered a financial shock, according to the survey. Meanwhile, 4.2 million people have missed bills or loan payments in at least three of the six months before the survey took place.
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Earlier this year the watchdog reminded thousands of lenders how it expects them to support customers in financial difficulty and took action with more than 30 firms to make sure customers got the help they needed.
Although the FCA does not yet regulate buy now pay later products, the regulator successfully engaged with providers to improve customers’ terms and conditions.
The FCA also recently warned insurers to protect their customers from unnecessary add-ons and unfair penalties, and its upcoming Consumer Duty will set a higher level of consumer protection, requiring firms to put customers’ needs first.
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“Our research shows that people up and down the country are struggling to keep up with their bills”, Sheldon Mills, executive director of consumer and competition at the FCA said.
“If you are facing financial difficulty, you don’t need to struggle alone. There is free debt advice available, and we have told firms that they must work with their customers to solve any problems with payment.”
The survey also found that people living in the most deprived areas of the UK are nearly seven times as likely to be in financial difficulty compared to those living in the least deprived areas.
It found that 12 per cent of people in the North East and 10 per cent in the North West are in financial difficulty, while six per cent of people in the South East and South West are in the same position.
Full findings from the survey will be published in early 2023.
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