Newer version available

There is a newer version of this publication available:
Debt Advice Handbook Scotland 1st ed - with new material

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, fca.org.uk/publication/finalised-guidance/fg21-1.pdf

•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, fca.org.uk/publication/finalised-guidance/fg21-1.pdf »