In a joint statement, watchdogs from the finance, utilities, energy, and communications sectors are urging companies to modify their approach when dealing with vulnerable customers.

Their letter emphasizes the urgency to end practices that involve overwhelming borrowers with communications and using intimidation, as such methods can harm mental health and lead to unwise decisions.

The national financial watchdog, along with regulators for energy, water, and communications, threatens to impose fines if firms disregard the guidance to improve. This move aligns with heightened consumer stress due to increased living costs, despite inflation easing slightly from its peak.

During Debt Awareness Week, studies show a record 6.7 million Brits are struggling financially, with young adults facing the most significant challenges. Charities like Crosslight Advice, offering debt guidance, report a surge in requests for help, further underscoring the pressing issue of debt in the UK.