Vulnerable Customers

Vulnerable consumer is a term used to describe people who, due to their own personal circumstances, are at risk to be taken advantage of in a Financial situation.. Consumer vulnerability can arise not only from conditions such as mental health, disability, age, literacy or language, but also from specific circumstances such as grief, unemployment or illness.

In the UK, an estimated 12 million people are at pension age where one out of six adults experience a certain degree of mental health issues at some point in their life and 10 to 11 million people are affected by disabilities. The FCA is focused on ensuring better outcomes for all consumers, including those classified as vulnerable.

Most Frms do not discriminate against or deliberately exploit individuals who might experience consumer vulnerability. However, they may lack the appropriate awareness to be able to identify and react appropriately to vulnerable consumers.

Furthermore, studies show that the Financial industry is more likely to encounter consumer vulnerability compared to other industries. It is key for Financial institutions to proactively implement best practices in terms of identification and management of vulnerable consumers to (1) avoid potential fines, loss of business and reputational damage, and (2) actively promote an ethical work environment

The topics covered in the course include —  

• Introduction to vulnerable consumers  

• How to identify and serve vulnerable consumers  

• Overview of the key regulations  

• Best practices for firms and individual