A report published by the Financial Conduct Authority this morning outlines that £12m has been paid out to thousands of companies in difficulties.
Its executive director of consumers and competition, Sheldon Mills, said many firms “did well” in helping people during the pandemic but “others sadly failed their customers”.
With inflation above 10 per cent and interest rates set to go up again this week, people are facing the prospect of rising bills and mortgage payments, putting renewed pressure on borrowers.
“’Given the current cost of living challenges, it’s vital that the sector continues to learn lessons to make sure they support struggling customers.”
The FCA said just 30 per cent of companies it reviewed in the report had looked into their customers’ specific circumstances, meaning they were often tied into repayment agreements which were sometimes unaffordable or unsustainable.
Read more at City A.M.
