What the FCA’s latest priorities mean for the consumer finance market in 2026
The FCA has today published the Consumer Finance Regulatory Priority Report, the sixth of its nine new Regulatory Priority reports.
The FCA highlights that the credit sector is one of the UK’s most varied markets, with over 45 million people in the UK using credit.
With credit being a key driver for growth the FCA, the FCA has emphasised in this latest report that it expects a competitive market which encourages greater access to credit for everyone who can afford it. The FCA is also encouraging firms to engage with its innovation hub to help test and launch innovative products and services.
Below we set out the FCA’s key priorities in the Consumer Finance sector, and what firms should be considering as they seek to respond in response to the publication.
1. Access to credit and financial inclusiveness
The FCA wants consumers to be able to access credit that meets their needs and offers fair value. In the aftermath of the pandemic and cost of living crises this has perhaps never mattered more. With 45 million people using credit the stakes are high.
Affordability versus accessibility has always been a dichotomy faced by firms and one that has always resulted in less accessibility in the fear of regulatory repercussions for “lending irresponsibly.” The FCA almost acknowledges this dichotomy and states that it wants to see firms continue to help those currently excluded from credit and will support those firms who want to innovate in this space.
Considerations for firms
Are your affordability assessments nuanced enough to reflect today’s income patterns?
Are you creating space in the market for people currently left out?
Could alternative data (such as open banking data or richer credit bureau information) help make fairer and more confident lending decisions?
Do your products genuinely deliver fair value?
Are you ready for change? Reforms to the Consumer Credit Act (CCA), the credit information market and the high-cost credit cap will require foresight and not hurried reaction.
2. Supporting customers in financial difficulty
This remains a high priority area and suggests that the FCA is still concerned about the outcomes it is seeing across the market. The FCA expects borrowers in financial difficulty to be able to access help without barriers or frustration. Slight changes to processes or improvements to wording/scripts can make a profound difference in consumer understanding.
Considerations for firms
Is it genuinely easy for customers to find the help they need when they need it and how they need it?
Are your teams equipped and train to identify and manage diverse types of vulnerability? Financial difficulty can often be accompanied with other vulnerabilities. Identifying the signs of vulnerability and early signs of financial difficulty can make a remarkable to difference to end customer outcomes.
How appropriate is your debt advice and is it tailored the customer’s circumstances?
Are you confident that your support and interventions work? While outcomes testing in this space can be uncomfortable, it is essential.
3. Ensuring consumers can complain when things go wrong and getting it right first time
In this priority area the FCA reinforces its expectations around proper complaints handling – which includes identification of complaints, dealing with complaints, record keeping, and root cause analysis. The FCA also states here that it expects firms to hold sufficient funds to meet potential and actual liabilities.
With the potential motor finance redress scheme expected to be finalised soon, complaints and redress will sit even higher on boards’ agendas over the next 12 months.
Considerations for firms
How confident are you in your complaints handling arrangements? Are complaints treated as valuable insight or operational noise?
Is your root cause analysis meaningful and leading to actual action?
Are you financial and operationally prepared for potential redress expectations?
Are customer’s complaining via CMC’s receiving the same consistent outcomes?
Other areas of focus
Beyond the big three priorities, several other more discreet themes will shape 2026 for consumer finance firms including buy now pay later credit, operational resilience, AI, and closed product reviews.
Final note
These priorities do not introduce anything radically new. They build on themes firms have been working with for some time, and they reinforce what many already recognise: doing the right thing for customers is good business, making Consumer Duty outcome testing more important than ever. Firms that act now to strengthen their approach will not just meet expectations, they will be better positioned to build trust, differentiate in the market, and deliver sustainable growth. Those firms however who get it wrong, risk attracting regulatory scrutiny and possible intervention.