Quick summary: A comprehensive survey of two thousand UK credit card holders reveals that 83% of consumers now seek financial guidance from unregulated sources such as social media platforms and artificial intelligence tools, with nearly a third suffering direct monetary losses as a result. Testing across major digital models shows a widespread failure to provide accurate, localized information, yet 68% of users admit they take no steps to verify the inherent risks or professional credentials of online advice before acting on it. These findings carry critical implications for public policy and healthcare practice, demonstrating an urgent need for the Financial Conduct Authority to strengthen consumer education frameworks to protect public well being against the severe mental health and financial distress caused by deceptive digital advice
Managing finances has become increasingly complex, with many people navigating rising living costs and an ever-expanding range of advice sources. But knowing which guidance to trust is not always straightforward.
New research from credit card provider Zable, surveying 2,000 UK credit card holders, has revealed that the vast majority of UK consumers are now seeking financial guidance from unregulated sources, with many failing to verify the information they receive before acting on it.
More than 4 in 5 (83%) have sought financial advice from unregulated sources, including AI tools, social media platforms, family, and friends. Even in more complex financial areas such as investing, mortgages, and financial planning, a significant proportion of consumers still rely on informal guidance rather than seeking support from regulated professionals.
Where brits seek unregulated advice
Salary and wages ranked as the area in which Brits are most likely to seek unregulated advice, with over half (54%) admitting they turn to unregulated sources for earnings and pay-related guidance. Other notable areas include
- Savings (49%)
- Insurance, such as life, health, and income protection (48%)
- Monthly budgeting (48%)
- Pensions (48%)
- Credit cards (46%)
- Investing (45%)
- Financial planning (43%)
- Renting vs. buying property (43%)
- Wills and trusts (40%)
- Taxes (38%)
- Personal loans (37%)
- Mortgages (36%)
- Debt repayment strategies (35%)
- Debt consolidation (33%)
The findings also revealed a strong generational trend. Younger adults were significantly more likely to seek unregulated financial advice, with 93% of 25–34-year-olds and 92% of 35–44-year-olds reporting they had done so. These age groups are often navigating major financial milestones, including buying property, building savings, managing debt, and planning for families, making them more likely to seek accessible and immediate guidance online.
AI tools tested for UK financial accuracy
Around 1 in 10 credit card holders already use AI tools for financial advice across areas such as budgeting, investing, and insurance.
Zable put four major AI tools to the test: Gemini, Grok, ChatGPT, and Claude.
The results were generally poor across the board, with most tools defaulting to US-focused advice, including references to 401(k)s, FDIC insurance, and American savings guidance that does not apply to UK consumers.
Claude performed best overall with 6 passes, though some responses still included outdated UK information. Gemini achieved 3 passes, ChatGPT achieved 2, and Grok performed worst, failing all 9 questions.
Consumers failing to verify advice before acting
Despite growing access to financial information online, many consumers are not properly scrutinising the guidance they receive. Some 68% do not check the risks involved before acting on financial advice.
Only 24% would verify a financial professional’s credentials before following their guidance, and just 22% would investigate whether advice may be influenced by sponsorships, commissions, or conflicts of interest.
With the growing influence of online finfluencers, particularly on platforms such as TikTok, where complex financial topics are often simplified, this lack of scrutiny leaves many consumers vulnerable to misleading or incomplete advice.
Poor advice costing brits hundreds
The consequences are already proving costly. Nearly a third (29%) of credit card holders, equating to more than 10 million people, reported losing money due to poor advice relating to credit cards.
Meanwhile, 21%, representing nearly 7.5 million people, reported losses of £100 or more in the past 12 months. A further 28% said they had experienced financial losses linked to investing advice.
Mortgage-related advice carried even greater financial consequences, with the most commonly reported loss range being £500–£1,000.
Arielle Rogers-Jenkins, Senior Product Manager (UK Credit Cards) at Zable, said: “When searching for financial advice, starting with regulated or official sources such as financial advisers, banks, building societies, and government-backed guidance services is key, as these organisations are held to specific standards and accountability in the UK.”
For those making more complex decisions around investing, mortgages, pensions, or long-term financial planning, speaking to a qualified financial adviser can help ensure advice is tailored to individual circumstances. Consumers can also verify that advisers are authorised by the Financial Conduct Authority (FCA) through the FCA Register and confirm businesses are legitimately registered through Companies House.
While AI tools, forums, podcasts, YouTube videos, and social media can be useful for building financial understanding, this type of content is often generalised in nature and should always be researched further before acting on the advice. A lot of advice online, particularly on social media, could be linked to sponsorships, commissions, or product promotions, so it’s important to seek clarification and avoid making financial decisions under pressure.
Experts recommend cross-checking information with official sources such as MoneyHelper, Citizens Advice, and the FCA to protect against the risks of unregulated financial advice, especially as digital tools continue to grow in popularity.