How Lenders Must Support Customers in Financial Difficulty

When a borrower hits hard times, a regulated lender cannot simply demand the money and look away. UK rules require firms to treat customers in financial difficulty fairly and to offer appropriate support. This guide explains what those obligations are — from the FCA's Consumer Duty to forbearance options — and how lenders must point you towards free help when you need it.

This is general information, not financial advice. If you are struggling, free and impartial debt help is available from StepChange, Citizens Advice and MoneyHelper.

Support is an obligation, not a favour

The most important thing to understand is that helping customers in difficulty is not optional goodwill — it is built into the UK regulatory framework. The Financial Conduct Authority (FCA) sets rules and expectations that require regulated lenders to deal with struggling borrowers fairly and with forbearance and due consideration. A lender that ignores your circumstances and presses only for full payment is not meeting those standards.

If you are struggling, you are not asking your lender for a favour. You are asking it to do something it is regulated to do — treat you fairly and consider appropriate support.

This is the principle behind much of our guidance, including what responsible lending means and why you should always contact your lender early if you are struggling rather than waiting until you fall behind.

The Consumer Duty raises the standard

The FCA's Consumer Duty sharpened these expectations considerably. Rather than asking only whether a firm followed the letter of the rules, the Duty asks whether customers actually get good outcomes. For customers in difficulty, that translates into clear obligations for firms:

• Provide proper support. Help should be easy to access, with no unreasonable barriers, and customers should not be deterred from seeking it.
• Communicate clearly. Information about options must be understandable, not buried in jargon.
• Avoid foreseeable harm. Firms should act to prevent difficulty turning into a crisis.
• Act in good faith. Customers should be treated honestly and fairly throughout.

In short, the Duty expects lenders to support customers, not just sell to them — and to be able to prove they are doing so.

What forbearance looks like

Forbearance is the umbrella term for the support measures a lender can offer a borrower in difficulty. There is no single fix; the right option depends on whether the problem is short-term or longer-lasting. Common measures include:

A good lender will discuss your circumstances and tailor support rather than offering a one-size-fits-all answer. To explore how these are agreed in practice, see our payment arrangements guide, and for the broader picture, getting help from your lender.

Extra care for vulnerable customers

The FCA places particular emphasis on customers in vulnerable circumstances — a broad idea that can include serious illness, bereavement, a relationship breakdown, job loss, caring responsibilities or low financial resilience. Anyone can become vulnerable, often suddenly.

Firms are expected to:

• Recognise signs of vulnerability and respond with care.
• Offer flexible support suited to the customer's situation.
• Train staff to handle sensitive conversations appropriately.
• Make adjustments where needed, such as alternative ways to communicate.

If your circumstances have changed in a way that affects your finances — a new diagnosis, a bereavement, the loss of a job — it is worth telling your lender, because it helps them tailor the right support for you.

Signposting to free debt advice

A key part of treating customers fairly is pointing them towards free, impartial help. Lenders are expected to signpost struggling customers to not-for-profit debt advice rather than leaving them to cope alone or steering them towards paid services they do not need. Reputable sources include:

• StepChange Debt Charity — free debt advice and plans.
• Citizens Advice — budgeting help, priority debts and rights.
• MoneyHelper — government-backed money guidance.

These services can build a budget with you, help you prioritise debts and even liaise with lenders on your behalf — invaluable if you owe money to several creditors.

A real-world example

The best lenders treat customer support as a continuing commitment, not a box to tick. UK lender Credicorp, for example, described its approach to continuing to support customers through spring 2026, setting out how it aims to help people facing difficulty — a useful illustration of how a responsible firm puts forbearance and fair treatment into practice rather than leaving them as abstract principles.

What to do if support falls short

If you feel your lender is not treating you fairly, you have clear routes to challenge that:

1. Raise it directly. Explain your situation again and ask specifically about forbearance options.
2. Make a formal complaint if you are not getting a fair response — see how to complain about a lender.
3. Escalate to the Financial Ombudsman Service. If the lender's final response does not resolve things, you can usually refer your complaint to the Ombudsman free of charge.
4. Get free debt advice in parallel, so you have independent support and a clear picture of your options.

The bottom line

Lenders are not free to ignore borrowers who fall on hard times. Under the FCA's rules and the Consumer Duty, regulated firms must treat customers in financial difficulty fairly, consider appropriate forbearance — from reduced payments to frozen interest or longer terms — take extra care with vulnerable customers, and signpost free debt advice. If you are struggling, reach out early and ask directly about your options; you are entitled to fair treatment, not a brush-off. And if a lender falls short, a complaint and, ultimately, the Financial Ombudsman Service are there to put it right.