Gary Rycroft 24 November 2023 5:30pm GMT After more than 25 years practising law at my firm of solicitors in Lancaster, and being on screen since 2009 as the resident lawyer in 15 series of

the BBC1 consumer programme _Rip Off Britain_, I have seen countless examples of businesses treating their customers in a manner which is clearly unfair, yet may not be unlawful.  Which

means that, in many cases, the businesses got away with it.  It’s why I think we need to make Consumer Duty a “big deal” – but you’d be forgiven for not knowing what it is, or how it affects

you. Here, I’ll set out everything you need to know. WHAT IS CONSUMER DUTY? Consumer Duty regulations were introduced in July 2023, and broadly aims to set higher and clearer standards of

services industry in Britain. It covers bank accounts, mortgages, credit cards, loans, savings, pensions and investments. Insurers are dual regulated in the UK with standards and policies

under the ambit of The Prudential Regulation Authority (part of the Bank of England) and the FCA regulating conduct issues. Sometimes FCA-regulated products pop up in unexpected places. Such

as buying a new big-ticket item (white goods or electricals or even a bed) and taking out a credit agreement to pay, or even purchasing a funeral plan. To achieve these objectives, the FCA

has set out the following key standards that you should expect when dealing with an FCA-regulated business:  * HELPFUL AND ACCESSIBLE CUSTOMER SUPPORT: it should be just as easy to sort out

a problem, switch or cancel your product, as it is to buy it in the first place * TIMELY AND CLEAR INFORMATION: this should be easy to understand, so customers are enabled to make good

financial decisions. This means important information should not be buried in lengthy terms and conditions * PRODUCTS AND SERVICES THAT ARE RIGHT FOR THE INDIVIDUAL: there shouldn’t be

attempts to push products and services that are not really needed * PROVIDE FAIR VALUE: customers should not be ripped off, or pay unexpected costs. Note that a “fair price” does not always

mean the best or cheapest deal, so the onus is still on you to shop around * CONSIDER VULNERABLE CUSTOMERS: overarching it all, firms should consider whether customers are in a vulnerable

situation – this could be due to poor health or financial troubles HOW CAN YOU USE CONSUMER DUTY TO YOUR ADVANTAGE? A paradigm shift has occurred in the burden of proof when making a

complaint against an FCA-regulated business.  It is now up to the business to demonstrate how they are delivering good customer outcomes, and not for the consumer to have to prove how and

why they have been treated unfairly.  This is significant; it means that if you make a complaint, the business is immediately on the back foot, as it must rebut the complaint, rather than

sit back and ask you to prove their case. Before the Consumer Duty was launched, the FCA expected consumers to prove how the FCA rules had been breached, and how they had been adversely

impacted. The same emphasis applies to many of the consumer protections under the Consumer Rights Act.  But the Consumer Duty puts emphasis on businesses to “show their workings out” and

show what they have done to treat their customers in line with the rules. This immediately strengthens the position of the consumer and gives a new vigour to any complaint.  The key is

getting a handle on what financial businesses should be doing, and what kind of behaviour could warrant a complaint. HOW SHOULD THE CONSUMER DUTY WORK IN PRACTICE? Here are my thoughts on

how I see the key outcomes set out in the FCA Consumer Duty working in practice: HELPFUL AND ACCESSIBLE CUSTOMER SUPPORT GOOD NEWS FOR: PUSH PAYMENT FRAUD VICTIMS. The new rules require good

customer service to be in place so that everyone can sort out problems, and switch or cancel products just as easily as when they signed up.  Push payment fraud is where people are tricked

into handing over their bank details, or unwittingly transferring money to a fraudster. People have a short window of opportunity to contact their banks when they realise they’ve been

tricked.  Phone lines should be easy to find and answered quickly. Yet in the past people have waited in the phone queue for excessive amounts of time or not been able to call fraud teams –

and the money has been lost as a result.  Now, the new rules mean that people should be able to get through to customer service lines quickly, and get the help they need there and then.  If

this doesn’t happen, the company would have to prove that you were given quick and easy access to its fraud team when the issue took place. If it can’t, your complaint may stand a better

chance of being upheld. TIMELY AND CLEAR INFORMATION  GOOD NEWS FOR: INSURANCE CLAIMS. This means that any contract created should be easy to understand and fair – and the important

information should be given to you upfront so you know what you’re getting into.  There are endless examples of insurance claims turned down due to obscure, ambiguous or unfairly applied

terms and conditions.  The new rules mean insurance companies – as well as other financial businesses – should not bury important info in the terms and conditions. They have to tell you

about all the important information you might need to know.  At the same time, they also have to tidy up their terms to make sure they are easy to understand.  So, if you were to have an

insurance claim denied, with reasons for the denial buried in your policy terms, you may have a case for complaining under the Consumer Duty, and the firm would have to prove whether it had

clearly set the information out to you. PRODUCTS AND SERVICES THAT ARE RIGHT FOR YOU GOOD NEWS FOR: MIS-SELLING MASS CLAIMS. Financial businesses must make sure that anything they sell to

you suits your needs. They shouldn’t push products on to you that you don’t want or need. From payment protection insurance (PPI) and packaged bank accounts to equity release, there have

been several mis-selling scandals in the past, which arose because businesses had set sales targets and forced staff to sell products despite knowing they were not always suitable.  The new

rules mean customers should not experience the “hard sell” from financial businesses. And if a new mis-selling scandal does emerge, the change in emphasis of the burden of proof should

drastically cut the need for years of legal wrangling for customers to prove they were mis-sold. The business will have to provide evidence proving they did not mis-sell.  PRODUCTS AND

SERVICES TO PROVIDE FAIR VALUE GOOD NEWS FOR: SAVING ACCOUNT RATES. The rules state financial products should be fairly priced, with no hidden costs or extras. So everything from excessive

fees and sneaky add-on charges should not be allowed, along with unfair pricing systems. This also counts for things like savings returns. In the past, it was common to find better savings

account rates online than elsewhere, meaning only the financially-savvy or well-informed were able to find the best deals.  Other customers may therefore miss out on good deals, or get

charged more each year for staying loyal to brands.  The new rules mean that these inconsistencies should not apply anymore, and firms should take steps to make it much easier to compare and

contrast prices.  Once again, if this doesn’t fit with your experience, you may be able to complain citing Consumer Duty rules, and providers will need to prove you wrong. SUPPORTING

VULNERABLE PEOPLE GOOD NEWS FOR: ALL CONSUMERS. Businesses should consider whether a customer is “vulnerable”, and factor their situation into how they deal with them. Vulnerability can mean

anything from being older, being in ill-health or having a disability, to having financial difficulties, or experiencing a challenging life event, like a divorce or loss of job. In short,

it could be any situation that might affect someone’s ability to enter into a contract, or follow through with an existing one.  The new rules mean businesses have to assess the needs of

their customers. Not all vulnerabilities will be obvious, but if a person explains their vulnerability, the business should act appropriately – selling financial products responsibly, for

example, and coming up with solutions to support people who are struggling.  This also bolsters the position of customers who do not have the IT skills or financial resource to buy products

and services online. ARE BUSINESSES ACTUALLY MAKING CHANGES? It seems the FCA is expecting businesses to self-police the new Consumer Duty measures. I suspect it is hoping the publicity

drive about the new rules will cause businesses to improve their behaviour.  This may work in the short-term, but I hope complaints where the new duty is referenced are upheld both within

the businesses’ internal complaint procedures, and when such complaints are escalated to the Financial Ombudsman Service. FCA-regulated businesses should already know about the Consumer

Duty, but we need consumers to start being aware of it as well, and to actively use it in complaints.  The FCA has given consumers the tools – they now need to be used so that many of the

issues I have seen over the years will now cross the line into being viable complaints, with the clout of the Consumer Duty to back them up and succeed. If you feel you have been treated

unfairly by an FCA-regulated business, ask it to show how it has complied with the Consumer Duty. They all have to prove their case. Recommended Ten ways to avoid a delivery disaster this

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