Which? comments on the FCA’s warning that consumer credit firms should not exploit the cost of living crisis in their marketing

Rocio Concha, Which? Director of Policy and Advocacy, said:

“Our research shows that in the last month, six in ten consumers have had to adjust their finances or lifestyle to make ends meet during the cost of living crisis – for example, by cutting back on essentials, dipping into savings or borrowing. It is totally unacceptable for firms to exploit the cost of living crisis by misleading consumers about the risks of borrowing – a cynical tactic that could push some struggling consumers into a much worse situation.

“Which? has been calling on the government and regulators to closely monitor how businesses are supporting their customers during the cost of living crisis and take action if they could be causing any consumer harm.

“It’s encouraging to see that the Financial Conduct Authority has warned consumer credit firms about their misleading advertising. The FCA should not hesitate to take action if firms fail to heed these warnings and continue to exploit the cost of living crisis to promote their products.”

ENDS

Most consumers cutting back, borrowing or dipping into savings as cost of living crisis bites, Which? finds

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