Finance Editor, Kael Tripton Ltd - LBS MBA - Verified against FCA Handbook: 14 June 2026
Quick answer
Consumer Duty (PRIN 12) applies to all bank accounts from 31 July 2023. Banks must prove fair value on overdraft rates and packaged account fees, provide clear communications and offer effective support. Challenge excessive overdraft rates or poor packaged account value through complaints and FOS.
Does Consumer Duty Apply to Your Bank Account?
Direct answer
Does FCA Consumer Duty apply to my bank account and overdraft?
Yes. Consumer Duty (PRIN 12) applies to all retail bank accounts from 31 July 2023. Banks must prove fair value on overdraft rates and packaged fees, provide clear terms, and deliver effective support. Challenge excessive rates through complaints and the FOS.
Review your bank account fees
List all fees and compare against market alternatives.
Check packaged account value
List all benefits and compare the cost of purchasing each standalone.
Write to your bank citing Consumer Duty Outcome 2
Request confirmation that your account has been subject to a fair value assessment.
Challenge overdraft rates
If materially higher than comparable banks, cite Consumer Duty Outcome 2.
Escalate to FOS if unresolved in 8 weeks
The FOS handles Consumer Duty complaints against banks.
| Product | Consumer Duty focus | Challenge route |
|---|---|---|
| Current account | Fair value of account fees | Complaint to bank plus FOS |
| Easy access savings | Fair value of rate vs base rate | Complaint to bank plus FOS |
| Packaged account | Fair value of benefits vs standalone | Complaint to bank plus FOS |
| Arranged overdraft | Fair value of interest rate | Complaint to bank plus FOS |
Related KT guides
Consumer Duty and Bank Account Closure: FCA Guidance
The FCA has raised concerns about banks closing accounts without adequate explanation, which disproportionately affects certain customer groups. In 2023-2024 the FCA issued specific guidance requiring banks to: tell customers clearly why their account is being closed, give adequate notice (minimum 2 months for personal accounts under the Payment Accounts Regulations 2015), consider whether closure is disproportionately harmful to vulnerable customers, and ensure the decision-making process does not discriminate. If your account is closed without a clear reason, write to the bank citing Consumer Duty Outcome 4 (consumer support) and request a written explanation. If the bank cannot provide a reasonable justification, escalate to the FOS.
Frequently Asked Questions
Does Consumer Duty apply to my bank account?
Yes. FCA Consumer Duty (PRIN 12, July 2023) applies to all retail financial products including current accounts, savings accounts and packaged accounts. Banks must demonstrate: products are designed for the target market, fees represent fair value, communications are clear, and support is effective.
Can I challenge my bank's overdraft fee under Consumer Duty?
Yes. Consumer Duty Outcome 2 requires banks to demonstrate overdraft charges represent fair value. If your bank's overdraft rate appears excessive relative to comparable products, challenge through the complaints process citing Consumer Duty Outcome 2.
What is Consumer Duty for packaged bank accounts?
Banks offering packaged accounts (Lloyds Premier, Santander 123, Halifax Ultimate Reward) must demonstrate the benefits represent fair value versus standalone market alternatives. The FCA has identified packaged accounts as a specific Consumer Duty fair value risk area.
What is Consumer Duty and savings rates?
Consumer Duty Outcome 2 requires banks to demonstrate that easy access savings rates represent fair value. The FCA monitored savings rates closely in 2023-2024 and found some banks were not passing on base rate increases proportionately. Savings fair value remains an active FCA supervisory focus as of June 2026.
Can my bank close my account under Consumer Duty?
Banks have the contractual right to close personal accounts with reasonable notice (typically 2 months). Consumer Duty does not prevent closure but requires banks to consider whether closure would disproportionately harm vulnerable customers. The FCA has issued guidance requiring banks to give reasons for account closures.
Primary sources
Kael Tripton Ltd is registered with the Information Commissioner's Office under registration number ZC135439.
