Research from the Financial Conduct Authority (FCA) found that just 19% of those who did disclose a vulnerability to a firm were encouraged to do so, and 22% felt it was necessary because of their circumstances.
A quarter felt uncomfortable when doing so.
Regarding the reasons why people were reluctant to share this information with firms, 37% said they were embarrassed, 24% did not want to be treated differently and 23% were worried they would get a worse deal.
Some 19% were not aware they could get help from a firm, 16% had security concerns and 16% said their circumstances did not impact their financial affairs. Similarly, 11% said it was not relevant to disclose this.
The FCA also found that people with vulnerabilities tended to have worse experiences with financial services firms, with 44% reporting a negative one, compared to a third of non-vulnerable customers.
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Those who did tell a financial services firm about their vulnerability had a better experience, as 74% said staff asked the right questions to understand their circumstances, 57% got the impression that the firm cared and 58% said the company took action to give them support.
Sarah Pritchard, executive director for competition, markets and international at the FCA, said: “It can be hard to tell your bank or insurer about your specific needs, but those who ask for help tend to feel more supported. We’ve seen good examples where financial firms are making a difference for vulnerable customers, but we know that vulnerable people report more negative experiences than others.
“We want firms to build on the good work identified, to help people open up and make sure they get the support they may need.”
