Vulnerability levels
There are three stages of vulnerability that advisers should be aware of. Clients can move through each stage many times in their lives, some may never move, while others may move backwards as well as forwards.
•Potentially vulnerable: a client who is at risk of becoming vulnerable if their circumstances change – eg, they are solvent, but their employer is threatening redundancy.
•Vulnerable: a client who is more likely to experience financial or other types of harm, loss or disadvantage – eg, they are elderly and have no support.
•Particularly vulnerable: a client who needs a different approach or extra help from an adviser or a third party – eg, they have an addiction.
It is important to be aware that actions taken by a debt adviser can improve or worsen the client’s situation. Because of this, advisers have a responsibility to ensure that vulnerable clients are safeguarded and supported.