LiveMore said that the mortgage industry needs to be “extra vigilant” of vulnerable customers as UK Finance figures show that arrears have risen by up to seven per cent year-on-year to around 81,900 borrowers. It continued that Which? figures had shown that 2.4 million households have missed bill payments in July.
The firm said that money concerns were one aspect of vulnerability, with the FCA defining a vulnerable customer as “someone who, due to their personal circumstances, is especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care”.
LiveMore said that Consumer Duty places the onus on firms to identify potential vulnerability, which sometimes is not immediately visible and customers may not consider themselves as such.
The company called on the heightened need to identify the capacity of people’s understanding of financial issues.
It added that lenders should “look further into the future of their clients by considering their longer-term situation and what may happen as customers get older”.
The lender said that vulnerability was of “considerable significance and importance” as its customers were aged 50 to 90 plus and could be more at risk.
‘Taking vulnerability seriously’
Leon Diamond, CEO and founder of LiveMore, said: “The introduction of Consumer Duty could not be more timely and as an industry we must all take the issue of vulnerability very seriously. More people are struggling financially, which can impact their mental health.
“Taking vulnerable customers into account at every stage of developing products and services, will help firms to meet their clients’ needs and avoid causing harm.”
He continued: “It is also important to have robust processes in place to spot and respond to vulnerability, make customers aware of support available, and have systems to record and retrieve information about customer needs.
“Lenders and intermediaries have a clear role to play in making sure consumers, especially those with any vulnerability, have access to good advice and good outcomes.”
