The FCA defines a vulnerable customer as “someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.”
Our policy is based on the FCA’s guidance on the fair treatment of vulnerable customers: Guidance for firms on the fair treatment of vulnerable customers (fg21-1), see “resources” on final page.
As Mark Leckie is set up as a business to support our client to make a claim, our consideration is that all our clients might be susceptible to vulnerability. Our communications with customers should always be undertaken with a view to look out for any signs of vulnerability.
There are many reasons why a customer might be vulnerable, or potentially vulnerable.
These include:
1. Difficulty in communicating
2. Poor standard of written and/or spoken English
3. Mental illnesses of various types
4. Dementia and other mental capacity deficiencies
5. Physical illnesses of various types, including addictions and dependencies
6. Stressful life events, such as bereavement, relationship breakdown, loss of job
7. Low levels of financial literacy
8. Low levels of income
9. Low levels of savings
10. Caring responsibilities for others
11. Lack of access to the internet and other digital media
12. Low levels of computer literacy and/or general difficulties using technology in various forms
13. Low levels of numeracy
14. Aged over 75
15. Aged under 18
As can be seen from the range of characteristics identified, there is the potential for a notable proportion of Mark Leckie's customers to be vulnerable in some way.
Most of these vulnerabilities fall under one or more of what the FCA considers to be the four ‘key drivers’ of vulnerability:
• Health
• Life events
• Financial resilience
• Capability Vulnerabilities can be permanent or temporary, but if an individual is vulnerable at the time that they engage the services of Mark Leckie, they need to be treated appropriately. We have a duty to ensure that vulnerable customers receive outcomes that are at least as good as those received by nonvulnerable customers. In many circumstances the individual may not recognise themselves as ‘vulnerable’. Nevertheless, if we identify signs of vulnerability, then they should be classed as a vulnerable customer.
There are several ways we might be alerted to a customer’s vulnerability, including spoken conversations and written correspondence. As we communicate with our customers via a number of mechanisms, we need to be considerate of indicators that might be presented via these different mechanisms.
The following could all be indicators of vulnerability which customers might display in interactions with advisers:
• Difficulty in communicating with the team in a way that shows an understanding of the services we provide.
• Asking the same question repeatedly
• Signs of distress or emotion through the use of language or the tone of voice.
• Poor concentration and acknowledgement of the information being provided.
• Stating that they are struggling to understand.
• Asking you to slow down or speak more clearly.
• Stating that a family member or other person usually deals with financial matters.
• Answering Yes or No to many questions, even when this is not appropriate.
Our customers may explicitly disclose a vulnerability when you are engaging with them, especially when discussing their personal circumstances. However as above, you may pick up on indicators when speaking to the customer such as being upset, angry or distressed.
It may be noticed that customers are lacking understanding of questions being asked or struggle with using technology or following simple instructions. This could be picked up through any communication channels, is important we identify these vulnerabilities, even if not directly divulged.
Mark Leckie identifies individuals as vulnerable through its interactions with consumers and considers vulnerable customers at all stages of the client journey. Mark Leckie's staff are trained to identify vulnerable clients whether they are on the phone, emailing or communicating on our intercom facility. Staff will look for any inconsistencies in communication, or demonstrations of not being able to grasp information that is being communicated.
Once these potential flags are identified, staff will support consumers using the TEXAS drill method and it is used when customers disclose some form of vulnerability:
• Thank – thank the customer for being frank and honest with you, should they tell you about a vulnerability.
• Explain – describe to them how the information they have provided will be used to assist them.
• eXplicit Consent – ask for the customer’s permission to record information about their vulnerability on file, as this could be a protected characteristic under data protection law. Again, explain that recording the information will help us in servicing the customer in the appropriate way.
• Ask – find out more details from the customer, such as how their vulnerability affects their ability to manage their finances, and whether they would like a relative or friend to assist them in their dealings with us.
• Signpost – consider if it is appropriate to make them aware of the assistance that can be provided by organisations such as debt advice agencies, Citizens Advice, counsellors such as the Samaritans etc.
Whether or not the customer explicitly discloses their vulnerability, we must consider whether we can take any of the following steps to assist them:
• Having a relative or friend accompanying them when they speak to us. Can they assist to provide guidance, support, translation etc. as required – most useful for younger customers, older customers, those with lower financial literacy, those with mental deficiencies and those with communication problems or poor English
• Providing details of independent support who can provide impartial advice such as the Citizens Advice Bureau (CAB)
• Agreeing a different medium for providing information to the customer – most useful for those with a limited grasp of technology
• Stopping to check the customer’s understanding more frequently than usual – most useful for all types of vulnerability
• Speaking slowly and clearly – most useful for all types of vulnerability
• Empathising where appropriate – most useful for all types of vulnerability, provided the customer discloses it
• Summarise the content of the call before concluding – most useful for all types of vulnerability.
This list is not exhaustive, if you are unsure how to best help the customer please seek advice or ask the customer how we can support them.
Mark Leckie has assessed the potential negative impacts our service may have on a vulnerable customer and how we can mitigate these.
Our service including all communication, call scripts and how we use the systems have been configured to reduce any negative impact on all customers, including those that are vulnerable. We avoid use of any jargon in our advertisements, website as well as written and verbal communication.
We believe the nature of their service will be a positive one, as the aim is to improve customers' financial flexibility and education. This could be particularly positive for vulnerable customers whose vulnerability can be impacted by financial stress and lack of understanding.
If the customer provides any details that would be classed a vulnerable trait explicit consent must be provided to be able to note the customer file.
‘Are you happy for me to note the information you have provided on our file to help us understand your situation and support your case going forward’.
If the customer says no, the information cannot be noted. Customers can also withdraw their consent at any time, and details of their vulnerability can be deleted if requested.
This should be clearly noted and include the following details:
• What is the vulnerability?
• How does it impact the customer in communicating and making decisions?
• Has the customer given consent?
• Is it long term or short term?
• Have you signposted the customer to any independent support?
Reports will be produced specifically reviewing vulnerable customers to analyse:
• Has the vulnerability been recorded correctly and with enough detail?
• Has consent been provided?
• Has the correct outcome been reached?
• Were there any barriers in the way to prevent the customer achieving the right outcome?
Calls will also be reviewed and will be failed if vulnerability is not handled appropriately. Continued failing of handling vulnerable customers appropriately can lead to disciplinary action.
This policy is to be reviewed annually to ensure ongoing compliance with regulation and to understand the importance of identifying vulnerable customers and how to appropriately manage them. All staff receive vulnerable customer training as part of their induction to the business; staff are tested to ensure adequate understanding and are re-trained each 12 months as a minimum requirement.
Training includes:
• Vulnerability indicators and how to identify
• How to acknowledge and respond
• TEXAS model
• How we can support vulnerable customers as a business
Refresher training will also be provided annually as a minimum. Please refer to this policy or ask a manager if you are unsure on how to respond to the needs of a vulnerable Customer.
This policy is accessible to staff at any time as well as the training material provided. If you have any doubts or questions regarding how to support or deal with a vulnerable customer, your manager will be able to support.If you have a particularly difficult call, there is a call status which can be used called ‘Distress Break’ which allows you to take a breather before the next call. Please alert your manager before you do so they can check in and ensure you don’t need any extra support.
There are various resources available to help you provide the best outcome for vulnerable customers:
https://www.fca.org.uk/publication/finalised-guidance/fg21-1.pdf
https://www.mind.org.uk/information-support/suicidal-thoughts-and-suicide-prevention/helping-someone-else/
https://www.samaritans.org/how-we-can-help/workplace/workplace-staff-training/one-day-courses/course-managing-suicidal-conversations/
