Customers with vulnerable characteristics
The FCA defines a vulnerable customer to be:
"Someone who due to their personal circumstances is susceptible to detriment or at greater risk of experiencing a poor outcome, particularly if a flexible, tailored approach is not taken when interacting or managing the individual needs of the person".
The FCA have found that 53% of UK adults show characteristics of a vulnerability. [Source: www.fca.org.uk October 2020].
Vulnerable customers are more likely to have difficulty accessing services, find it hard to get the best deal, fall behind on credit commitments and be victims of scams.
What to look out for
Every customer’s circumstances are different. Some vulnerabilities are temporary and some are permanent. Whether it’s because of a health condition, a life event, their financial or emotional resilience, or personal capability, it helps if you know what vulnerabilities to look out for.
Examples of vulnerabilities:
- An illness that affects how a person can carry out everyday tasks
- A bereavement, job loss or relationship breakdown
- Low income or savings
- Low knowledge of or confidence in how to manage money.
Please refer to our Vulnerable Customer Guide [PDF] for further information.
Ways you can help
Once you've identified that a customer needs additional support, there are a range of different ways you can support and protect their interests.
- Check they’re happy to discuss their situation with you
- Ask them how they prefer communicating
- Show patience and sensitivity
- Be empathetic to their situation so you don’t offer help that’s not appropriate
- Encourage them to ask trusted family and friends for help with explaining options
- Explain how third-party legal support could help them understand how agreements will affect them
- Suggest a face-to-face meeting or call if they’re not confident online
- Gain insights and get a better understanding of their situation by asking open questions
- Take time to ensure they understand what you’re telling them – slow down or repeat if you need to
- Summarise the main points of what you’ve discussed
- Suggest they take a little extra time to think over your recommendations before making a decision
- Check they’re happy with the way your meeting is going
Offering extra support
There are several institutions available to help and support customers, some of these include;