FCA Consumer Duty (UK)

The Financial Conduct Authority (FCA) Consumer Duty, which came into force in July 2023, sets a higher standard of consumer protection across UK financial services. Under the Duty, firms must actively ensure retail customers receive products and services that meet their needs, receive clear communications, can access appropriate support, and are protected from foreseeable harm. In the context of fraud, Consumer Duty implies that banks and payment firms should proactively identify and prevent transactions that show warning signs of scam activity, rather than passively processing them.

The Duty has four outcome areas relevant to fraud: product and service design (ensuring payment products are not easily exploited for fraud); price and value (not charging exploitative fees on fraud-loss accounts); consumer understanding (clear warnings about fraud risk before high-risk transactions); and consumer support (accessible, effective channels for fraud victims to get help). Firms that fail these outcomes face FCA supervisory action including fines and requirements to remediate affected customers.

Consumers cannot file a Consumer Duty complaint directly with the FCA. The FCA is a market regulator, not a consumer dispute resolver. If you believe a firm has failed its Consumer Duty obligations in handling your fraud case, first complain to the firm, then escalate to the Financial Ombudsman Service. The FCA uses patterns of FOS cases and its own supervisory data to identify firms that are systematically failing their obligations.