FS firms have introduced proactive measures to help support consumers in debt but more needs to be done to encourage engagement - PwC

Commenting on the Financial Lives survey published by the Financial Conduct Authority this week, Isabelle Jenkins, Leader of Financial Services at PwC UK, said:

“The steep increase in the number of households finding it difficult to keep up with their credit and bill repayments reflects our Consumer Credit Confidence data, which also showed that credit confidence - i.e. how consumers feel about their finances - declined to levels last seen in 2012.  

“We know that many lenders have introduced proactive measures to support customers with the rising cost of living such as removing penalties for those needing to access their savings, extending fee-free overdraft buffers and providing budgeting tools. 

“However, firms also need to address the issues the Financial Conduct Authority has highlighted, such as doing more to encourage consumers to engage, particularly in light of 

the incoming Consumer Duty; this is a real behavioural change challenge but one that lenders and financial services institutions must be ready to tackle. 

“We’ve seen firms support customers by testing the clarity of communications and taking into account the psychological barriers which may make consumers reluctant to engage with lenders when they are experiencing financial difficulties.

“As firms continue to take these steps, those impacted by the rising cost of living should feel encouraged to contact their lenders and seek vital support at an early stage.”