FCA reviews fair value assessments across consumer finance market three years into Consumer Duty

The Financial Conduct Authority reviewed fair value assessments across the consumer finance market three years after the Consumer Duty implementation. Stronger assessments demonstrated a clear, evidenced relationship between what customers paid and the benefits they received, while weaker assessments relied on assumptions and had evidence scattered across documents. Firms that segmented customers by credit risk, product usage, and vulnerability characteristics were better able to identify if some groups were paying more or receiving less than others.