Banks told to end long helpline waits

FINANCE firms are to be held accountable for burying key rules in small print, charging “rip-off ” fees and forcing customers to wait for hours on helplines for support under new rules.

Lenders and investment companies will now be required to show that they are delivering “good outcomes” for retail customers, under new guidance from the Financial Conduct Authority (FCA), toughening old guidelines that said companies only had to treat customers fairly. That was deemed to be too vague and favourable to businesses.

Companies could now be punished for refusing to answer the phone to customers who have a complaint, or hitting customers with hidden fees buried in small print.

“The current economic climate means it’s more important than ever that consumers are able to make good financial decisions,” said Sheldon Mills, executive director of consumers and competition at the FCA. “The financial services industry needs to give people the support and information they need and put their customers first.”

Businesses will have 12 months to company with the new rules.