The Financial Conduct Authority (FCA) has revealed that it has so far secured up to £47m of redress from 17 lenders for over 195,000 customers.

Having worked with almost 100 lenders on how they treat borrowers in financial difficulty, the regulator has sought significant improvements from many of them.

Issues identified by the FCA included not adequately tailoring support to individual circumstances, failing to respond appropriately to customers with characteristics of vulnerability, and not effectively engaging with customers about money guidance and debt advice.

The FCA has given detailed feedback to the 17 firms it worked with on areas they need to improve.

Separately, the FCA has also confirmed it is proposing to make permanent requirements on lenders to support borrowers in difficulty, which were put in place during the pandemic.

Executive director of consumers and competition, Sheldon Mills, commented: “Many firms have been following our temporary guidance, developed during the pandemic, to support borrowers in tough times. Our proposals today will help ensure this continues.

“Where we see firms not providing the right support, we will act quickly to put this right. Firms are already paying up to £47m in compensation for not providing appropriate support to borrowers.

“If you’re worried about keeping up with payments, we encourage you to talk to your lender as soon as possible.”

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