How financial services providers should support you at a difficult time

At different points in life, we face periods where managing money is more challenging than usual. And when that happens, dealing with banks, insurers or lenders can feel overwhelming.

That’s why the Financial Conduct Authority (FCA), the UK’s financial regulator, introduced guidance to make sure people in difficult life situations get the support they need. These are officially called the ‘FCA’s guidance on the fair treatment of vulnerable customers’.

FCA data shows that around 26 million people in the UK are living with circumstances that could make managing money more difficult. This could be due to health conditions, bereavement, relationship breakdowns or other situations that cause financial stress.

But new research from Smart Money People reveals that around 11 million people in a vulnerable situation don’t realise they fall under the definition used by the FCA, meaning they could be missing out on the vital support that’s available.

Who is at risk of financial vulnerability?

The FCA has four key drivers that may increase the risk of financial vulnerability:

1. Health: conditions or illnesses affecting a person’s ability to carry out day-to-day tasks
2. Life events: major life events such as bereavement or relationship breakdown
3. Resilience: low ability to withstand financial or emotional shocks
4. Capability: low knowledge of financial matters or low confidence in managing money

If you’re in a vulnerable situation, here are some examples of what to expect from your financial services providers under the FCA guidance.

You should feel listened to

Companies should make sure their staff have the skills and capability to recognise you’re in a vulnerable situation and treat you with sensitivity and respect.

You can ask for communication in a way that works for you

Communication from your financial services provider should be clear, tailored and accessible for your needs.

Products and services designed with your needs in mind

The FCA expects companies to design products and processes so they work for everyone, including people facing difficulties. That means considering how easy it is for someone to manage their account or get help when something goes wrong.

If something happens, support is there

Missed payments or unexpected charges can be stressful for anyone but if you’re already under pressure, it can be even tougher. Financial services companies are expected to try and help you find a solution to any problems that come up with your account.

Help should be proactive

The FCA’s guidance says that companies should actively look for signs someone might need extra help and check in to see if you need more support.

Why it’s important to speak to your financial services provider

Two in five (40%) consumers don’t realise they’re in a financially vulnerable situation, meaning they’re at more risk of financial harm. Worryingly, people in vulnerable situations are 47% more likely to be victims of fraud or scams.

Our study found that the predominant reason customers choose not to tell their financial services providers about their situation is because they don’t think it will change how they're treated (18%). 15% said they were concerned about privacy and 12% were worried about stigma or embarrassment. Sadly, one in 10 believe that disclosing their situation could make their situation worse.

After disclosing their situation, more than half (52%) of people in a financially vulnerable situation said their treatment was more positive than before. This included better customer service (52%), more communication checking in on them (41%), and more information to protect them from fraud or scams (37%). 

Some companies still have work to do to improve their support for people in vulnerable situations. 13% said they experienced worse treatment. Concerningly, a quarter (24%) of those who received worse treatment reported being ignored by their financial services providers.

We’re shining a light on real-life experiences

Our study highlights that a worrying number of people experiencing circumstances that could affect their finances aren’t getting the essential support available to them. 

At Smart Money People, we want to change that by offering a clear picture of how companies really treat their customers. By shining a light on these real-life experiences through the customer reviews left by our Smart Money People community, we help people make informed decisions about who to trust with their money.

*Smart Money People commissioned One Poll to survey 2,000 UK adults between 30 May and 10 June 2025. 1000 respondents had experienced situations in the past five years which would make them vulnerable by the FCA’s definition.