Vulnerability characteristics and drivers

CPAG

Vulnerability characteristics and drivers

Characteristics of vulnerability include:

•communication difficulties – eg, learning difficulties, English not being the client’s first language or dyslexia; and

•reduced physical or mental capacity.

The FCA has identified four key drivers which can lead to increased risk of client vulnerability.1FCA, FG21/1 Guidance for firms on the fair treatment of vulnerable customers, 2021,

•Health: conditions or illnesses affecting a client’s ability to carry out day-to-day tasks, whether physical or mental, severe or long term.

•Life events: such as bereavement, job loss or relationship breakdown.

•Resilience: low ability to withstand emotional or financial shocks.

•Capability: low knowledge of financial matters or low confidence in managing money, or low capability in other relevant areas such as literacy or digital skills.

1 FCA, FG21/1 Guidance for firms on the fair treatment of vulnerable customers, 2021, »

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Debt Advice Handbook Scotland - 1st edition

Written in partnership with Citizens Advice Scotland and Money Advice Scotland, CPAG is delighted to announce the first edition of the Debt Advice Handbook Scotland. Based on CPAG’s best-selling Debt Advice Handbook, it details the stages of the debt advice process in Scotland and the key skills needed to give good advice. No money adviser should be without this essential guide. This online edition is funded by the Scottish government.

The Handbook provides the most comprehensive information needed by advisers on the tools and strategies to help clients with their financial difficulties. It details the key stages of money advice, including interviewing clients, establishing liability, prioritising debts, preparing a financial statement, negotiating with creditors and dealing with sheriff officers. Emphasis is placed on taking due care of vulnerable clients and making sure that any payment arrangements agreed are appropriate. There is a focus on sustainable credit arrangements that do not affect a client’s ability to pay essential living expenses and priority debts.

It is the go-to tool for specialist debt advisers as a first step in accessing primary legislation and regulations and is also a reliable guide and training aid for the new debt adviser. Advisers who undertake debt advice alongside other sorts of advice work or other professional disciplines – such as social workers and housing officers – will find this handbook an indispensable resource.

Fully indexed and cross-referenced to law, official guidance and to court and tribunal decisions, tactical guidance and examples are included throughout.

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CPAG

Print publication date Jun, 2024

This content was last updated:2024-06-27

Word count173,783

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Vulnerability characteristics and drivers

Debt Advice Handbook Scotland - 1st edition

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