The Financial Conduct Authority’s (FCA) Consumer Duty regulations, which came into full effect on 31 July 2023, fundamentally shifted how financial firms are required to treat customers. While there were initial fears that these rules - designed to ensure 'good outcomes' - would put popular 0% interest credit card deals in jeopardy, the market has proven resilient. As of January 2026, 0% deals remain a core part of the UK lending landscape, though lenders have significantly tightened eligibility and adapted their fee structures to comply with the new standards.

The new regulatory framework, known as the "consumer duty," is being introduced by the Financial Conduct Authority (FCA) with the aim of ensuring that financial firms prioritize delivering positive outcomes for customers and prevent foreseeable harm. This encompasses fair pricing for all customers, addressing excessive charges, and facilitating easier cancellation or switching of products.

While some skeptics doubt the impact of this new regime, financial institutions are already taking steps to comply with the stricter rules. For instance, Santander recently rebranded its online savings accounts, previously accessible only via digital means, to Easy Access Saver and Easy Access Isa, allowing customers to administer them through various channels, including branches and telephone services.

To some extent, banks are left to interpret the rules for themselves, deciding what does or doesn't result in a "good outcome" for a customer. Some are taking the view that limiting account access exclusively to online channels may not qualify as a "good outcome" for customers, especially when alternative options like bank branches and call centers exist. As a result, some banks are doing away with online-only bank accounts, but this could ultimately result in higher costs or lower interest rates for customers if there's more demand on branches and telephone services, a potentially worse outcome in another way.

Contrary to early predictions that 0% deals would vanish, the market remains robust in early 2026. Far from disappearing, interest-free periods are still highly competitive: the longest 0% purchase cards currently offer up to 25 months (from providers like M&S Bank, Lloyds, and TSB), while 0% balance transfer cards offer up to 38 months (offered by TSB). While the FCA still maintains that firms should not rely on 'unfavorable outcomes' (such as customers slipping into persistent debt), lenders have managed this by using more sophisticated eligibility checkers rather than withdrawing the products entirely.

James Daley, Managing Director of Fairer Finance, previously noted that for products like 0% credit cards with no fees, these rules posed an 'existential challenge.' Looking back from 2026, while the product class has survived, we can see the impact of that challenge: balance transfer fees for the longest deals have crept up to the 3.45% – 3.49% range. The 'existential challenge' did not result in the end of 0% deals, but rather a shift toward more transparent fee-based models that align with the FCA's demand for fair value.

He noted that lenders are aware that some customers taking advantage of these credit card deals will ultimately miss payments or fail to pay off balances at the end of the promotional period. If the banks can predict which customers these will be, that certainly will go against the new customer duty. In addition, punishing customers who miss a payment by stripping them of their 0% deal may also not meet the new customer duty requirements.

As a result, it may be that banks pull these 0% offers, at least in their current state.