Unfair contracts

Financial businesses must provide contracts that are clear and fair, and can’t enforce unfair terms. Find out how to spot and report an unfair term.

First published: 05/04/2016 Last updated: 20/03/2023 See all updates

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When you buy a financial service or product, you’ll need to accept the terms and conditions offered by the business. This may include a contract for:

  • a credit card for personal use
  • a residential mortgage
  • travel insurance for a holiday

These contracts should set out what you can expect from the business and what the business can expect from you in return. The terms and conditions in these contracts must be fair and clear. If you come across a term that isn’t, you can report it to us.

We have powers to challenge unfair and unclear terms in consumer contracts.

How to spot an unfair or unclear contract term

A contract term can be unfair or unclear for many reasons.

It might:

  • allow the business to change the terms of the contract without telling you or explaining why
  • bind you to hidden terms
  • limit your legal rights unfairly
  • charge an unreasonably large sum if you don’t stick to your side of the contract
  • automatically renew without giving you the right to cancel
  • be read in more than one way
  • use wording that isn’t clear or prominent to describe the product or service, or the costs

But just because a contract term looks like one of these examples, it doesn’t necessarily make it unfair or unclear. It will depend on the contract overall.

Contract terms we can investigate

We can only consider contracts that:

  • exist between a customer and a business
  • were entered into after 1 July 1995

Report a contract term

If you come across a contract term that you think is unfair or unclear, please report it to us. We really appreciate the time you spend doing this, as it could help protect others from similar terms.

But while we consider every report that's sent to us, we can’t share details of any action we take.

Answer the following questions to find out if we can consider your report. Depending on your answers, we may ask you for more information.

If you complete the form and find this isn’t the right place to report your concerns, then please contact us[1]. Or, if you want to complain about a firm, find out how.[2]

Is the contract you're complaining about between a consumer and a business?

Generally, you’re a consumer if you enter into the contract for personal purposes, such as:

  • taking out a credit card for personal use
  • taking out a residential mortgage
  • taking out travel insurance for a holiday

In this case, this isn’t the right place to report your concerns. We can only look at contracts between businesses and consumers.

If you want to get in touch because you’re worried about how a business is behaving, or for any other reason, please contact us[1]. Or, if you're unhappy with a financial product or service, find out how to complain[2].

Does your concern relate to a financial product, such as:

  • mortgages
  • insurance
  • bank, building society or credit union accounts
  • life assurance
  • pensions
  • investments (including spreadbetting and contracts for difference)
  • consumer credit (including credit cards, payday loans, debt management, home collected credit and pawnbroking)
  • claims management companies (CMCs)
  • other types of financial products

In this case, this isn’t the right place to report your concerns. We can only look at consumer contracts relating to financial products and services.

If you want to get in touch because you’re worried about how a business is behaving, or for any other reason, please contact us[3]. Or, if you're unhappy with a financial product or service, find out how to complain[4].

What does your concern relate to?

In this case, this isn’t the right place to report your concerns. We can only look at terms in consumer contracts.

If you want to get in touch because you’re worried about how a business is behaving, or for any other reason, please contact us[5]. Or, if you're unhappy with a financial product or service, find out how to complain[6].

When did you enter into the contract?

In this case, this isn’t the right place to report your concerns. We can only look at contracts entered into on or after 1 July 1995.

If you want to get in touch because you’re worried about how a business is behaving, or for any other reason, please contact us[7]. Or, if you're unhappy with a financial product or service, find out how to complain[8].

Please tell us more about the contract you're concerned about.

Report an unfair contract[-9]

Please tell us more about the contract you're concerned about.

Report an unfair contract[11]

Please tell us more about the contract you're concerned about.

Report an unfair contract[12]

How we deal with unfair and unclear contract terms

Following past reports, we’ve asked businesses to stop using or change a term, and have secured compensation for consumers.

But while we can challenge a contract term, only the courts can ultimately decide if a term is unfair or unclear.

: Editorial amendment Page update as part of the website refresh
: Information changed Money Advice Service to MoneyHelper
: Information added House style updates and decision tree added to clarify FCA powers


Source URL: https://www.fca.org.uk/consumers/unfair-contracts

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