VUNERABLE CUSTOMERS
The Financial Conduct Authority (FCA) defines vulnerable customers as the following:
‘A vulnerable consumer is someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.’
How can a customer be vulnerable?
Vulnerability can come in a range of guises and can
be temporary, sporadic or permanent in nature. It is
a fluid state that needs a flexible, tailored
response from firms. The following are examples of
how customers can be vulnerable:
• Mental health problems i.e. depression or anxiety
• Difficult financial circumstances i.e. recent
unemployment
• Physical health problems i.e. disability or long
term illnesses
• Communication skills i.e. an individual who has
limited English
How can businesses assist
vulnerable customers?
Vulnerability can come in a range of guises and can
be temporary, sporadic or permanent in nature. It is
a fluid state that needs a flexible, tailored
response from firms. The following are examples of
how customers can be vulnerable:
Consistency | Firms should have an effective policies and procedures in place to ensure a consistent approach across operations |
Clear Information | Providing clear information to customers before and after sale ensures that vulnerable customers are more likely to make informed decisions |
Staff Training | Providing staff with sufficient training to enable vulnerable customers to be identified and have their sensitive issues handled appropriately |
Empowering Staff | Referring vulnerable customers to staff who have the authority and discretion to take a tailored approach to a customer’s circumstances |
Flexibility in Service | Treating customers as individuals and considering how our service can be adapted to meet their specific circumstances |
Being Pro-Active | Pro-actively contacting customers and offering a tailored service to meet their specific circumstances |
Specialist Advice | Referring customers to organisations that can offer specialist advice to assist a customer with their vulnerability |
What guidance is available?
Please note that this table is not indicative of all
vulnerable customer considerations. Whilst Get Me
Car Finance is unable to offer businesses advice,
the FCA and the British Bankers’ Association offer
guidance about how to identify and respond to
vulnerable customers. This can be found at:
•
www.fca.org.uk/consumer-vulnerability (pdf)
•
www.bba.org.uk/publication/bba-reports/improving-outcomes-for-customers-in-vulnerable-circumstances
There are also a number of organisations that can
provide specialist assistance to customers; here are
some that may be considered:
•
www.moneyadviceservice.org.uk
•
www.citizensadvice.org.uk
•
www.samaritans.org