Zable said it raised concerns about the quality of information influencing high-value property decisions.
The survey of 2,001 UK credit card holders found that 83% of people had sought financial guidance from non-regulated sources, with mortgages among the key areas where consumers are turning to informal advice instead of regulated professionals.
Almost a third of credit card holders, equivalent to over 10 million people, said they had lost money through bad advice given in relation to credit cards, with 21% reporting losses of £100 or more in the past 12 months.
Mortgage-related decisions carried some of the highest costs, with the most common loss range among affected consumers falling between £500 and £1,000.
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Unregulated advice common for younger consumers
The research also found that younger consumers were the most likely to use unregulated sources of financial advice, with 93% of 25-34-year-olds and 92% of 35-44-year-olds doing so.
The findings come amid growing concerns over the role of AI in financial decision-making. Around one in 10 consumers said they already use AI tools for financial advice, covering areas such as budgeting, investing and insurance.
To test the reliability of AI-generated guidance, Zable assessed four major platforms – ChatGPT, Claude, Gemini and Grok – against nine common personal finance questions. The company found that all four tools failed at least some of the tests, with Grok failing all nine questions.
Three of the four platforms provided US-focused recommendations rather than advice relevant to UK consumers, while some responses included outdated UK information.
Zable also found that consumers rarely carried out checks before acting on advice.
Many consumers are failed to properly verify the guidance they receive before making financial decisions, with 68% not checking the risks involved before acting on financial advice.
Only 24% would check a financial professional’s credentials before following advice, and just 22% would investigate whether advice may be influenced by sponsorships, commissions, or conflicts of interest.
Arielle Rogers-Jenkins, senior product manager of UK credit cards at Zable, said: “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.”
Zahid Bilgrami, CEO of Mortgage Brain, said: “These findings are concerning, but not entirely surprising. Consumers are increasingly comfortable asking AI chatbots questions about major financial decisions, yet there’s an important distinction between information and regulated advice.”
He added: “More importantly, regulated mortgage advice isn’t just about arriving at an answer. A broker is required to understand the customer’s circumstances, explain why a recommendation is suitable, keep an audit trail of the decision-making process and is accountable if things go wrong. An AI chatbot can’t provide that level of accountability or evidence.”
