The UK’s finance sector regulator has begun the first stage of a consultation on plans to “guide and enforce” fair treatment of vulnerable customers – which could be as much as 50% of the British population.

The Financial Conduct Authority (FCA) is seeking feedback on proposed guidance by October 4.

It says half of UK adults display characteristics of being potentially vulnerable, and vulnerable citizens are less likely than average to hold insurance.

“We want to see firms explicitly embedding the fair treatment of vulnerable consumers into their culture,” FCA Executive Director of Strategy and Competition Christopher Woolard said.

“Where we find that firms are not doing enough to ensure that consumers are treated fairly, we will take action.”

The FCA says vulnerable consumers find switching products overwhelming, while people aged 65 and over are more likely to pay a higher price than other consumers for home insurance.

Research showed that 3 million people with disabilities were turned down for insurance or were charged extra, and only a third of people with severe mental health problems had home insurance.

Although the FCA says many firms have made significant progress in how they treat vulnerable consumers, “more consistency is required”.