Complaints involving the Consumer Duty

The Consumer Duty isn’t relevant to all the complaints that consumers bring to us.

However, it may be a relevant consideration in complaints about things that happened on or after 31 July 2023. The Consumer Duty isn’t retrospective, so doesn’t apply to anything that happened before then.

When the Financial Conduct Authority (FCA) first introduced the Consumer Duty on 31 July 2023, it only affected products and services on sale to new customers and available for renewal to existing customers.

But since 31 July 2024, the Consumer Duty has applied to closed products and services too.

The Consumer Duty introduced the Consumer Principle, which requires firms to “act to deliver good outcomes for retail customers”. Among other expectations, the guidance states that firms should:

• put consumers at the heart of their business and focus on delivering good outcomes for customers
• consistently consider the needs of their customers, and how they behave, at every stage of the product or service lifecycle
• continuously learn from their growing focus and awareness of real customer outcomes
• ensure that the interests of their customers are central to their culture and purpose and embedded throughout the organisation
• monitor and regularly review the outcomes that their customers are experiencing in practice and take action to address any risks to good customer outcomes

The Financial Conduct Authority (FCA) introduced the Consumer Duty on 31 July 2023. At first, it only affected products and services on sale to new customers and available for renewal to existing customers.

But since 31 July 2024, the Consumer Duty has applied to closed products and services too.

The Consumer Duty introduced three cross-cutting rules to encourage good behaviours:

• Act in good faith
• Avoid causing foreseeable harm
• Enable and support retail customers to pursue their financial objectives

In addition, it introduced four outcomes it wants to see delivered:

• products and services – firms should only sell these when they meet the needs, characteristics and objectives of its customers
• price and value – the price of a product or service should be reasonable compared to the overall benefits it provides
• consumer understanding – customers must get all the information they need, at the right time and in a way they understand, so that they can make informed decisions
• consumer support – firms should support customers to use the products and services they’ve bought 

And the rules require firms to consider the needs, characteristics and objectives of their customers – including those with characteristics of vulnerability – at every stage of the customer journey. 

However, the Consumer Duty doesn’t:

• guarantee that individual customers will always get good outcomes – or protect them from poor outcomes

• remove a consumer’s responsibility for their choices and decisions

We only look at complaints you’ve had an opportunity to look into first. If the consumer is unhappy with your decision, or you don’t respond to them within the relevant time limits, they can come to us. 

We resolve complaints based on what’s fair and reasonable in the circumstances. That means the individual facts of the case and the circumstances and characteristics of the consumer. To do this, we’ll look at the facts and evidence from both you and your customer, and consider any:

• relevant laws and regulations
• regulators’ rules and guidance
• guidance, standards and codes of practice in place at the time of the event

The Consumer Duty is regulatory guidance. So where it’s relevant is one of the things we’ll consider when weighing up whether:

• you did what we’d expect you to, and
• the consumer was treated fairly

You’ll find more resources about the Consumer Duty on the FCA’s website.

Businesses and consumer advisers can contact our Business Support Hub on 020 7964 1400 for information on how we might look at a particular complaint, or for guidance on our rules and how we work.

We also work with businesses and other organisations to help prevent complaints.