Vulnerable Persons Policy
1. Policy Statement
We are committed to identifying, assessing, and managing vulnerable customers in accordance with our own objectives and policy, as well as any regulations and guidelines set out by our regulators.
Implemented are several identification and assessment tools within the procedure section of this document, aimed at identifying, assessing, and dealing with all Vulnerable Customer situations and to consistently ensure that our staff are aware of, and knowledgeable about Vulnerable Customers, including how to handle all situations.
2. Regulatory References
PRIN 2.1.1, FG21/1 Guidance for firms on the fair treatment of vulnerable customers
3. Purpose
We are committed to ensuring that all our customers are treated fairly, and we meet all of their needs to the best of our ability.
We appreciate that sometimes our customers may be vulnerable because of a physical or mental health condition suffered by themselves or a family member, age, illiteracy, or if their first language is not English.
This means that we may have to treat vulnerable customers according to their individual circumstances. In order to do so we have employed staff with experience of sales and customer service and given them the necessary training to enable them to identify the signs of vulnerability and how to proceed with that customer.
We ensure that our staff have the necessary training, knowledge, understanding and support to be able to identify the potential signs of a vulnerable customer in their dealings with them, and then tailor their approach accordingly.
4. Scope and Definition
Vulnerability is an extremely subjective area, however our staff are constantly on the lookout for potential signs, such as, a lack of understanding, communication issues and unusual or erratic behaviour.
The FCA defines a Vulnerable Customer as:
“Someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.”
The vast majority of our communication with customers is face to face and, in some instances, over the phone, which does however make it easier for our staff to be able to identify both short term causes of vulnerability, such as short-term illnesses or a bereavement, as well as long-term causes, such as mental illness or a disability.
There are several risk factors that contribute to consumer vulnerability so these should be considered whenever dealing with an existing or potential customer. The nature and scale of characteristics of vulnerability that exist in our customer base are:
- Low literacy & numeracy skills
- Communication difficulties
- A clear lack of understanding
- Appearing confused
- Advanced age
- Low income and high value purchases
- Change in circumstances
- Under the influence of alcohol or drugs
- Physical disability
- Mental health problems
- Cognitive or dexterity impairments
- Sensory impairments
- Onset of ill-health
- Lack of comfort with new technology
- Inexperience (youth)
- Bereavement, job loss, divorce
5. Processes and Procedures
If a member of staff believes that a customer could potentially be vulnerable then they will ask non-intrusive questions to understand the customer’s circumstances.
Any information gathered will be processed in line with GDPR and the Data Protection Act 2018.
We will always:
- Ask for a customer’s explicit consent to record, store or process details of their vulnerability
- Clearly explain why and who the information will be shared with
TEXAS
IDEA
Typically, we would only process a customer's vulnerability where it is relevant to tailored service or home consultations.
We offer communication via: post, email, phone, and face-to-face, and all communication is clear and jargon-free.
Our products and services are flexible and explained in full, with written and verbal follow-up.
We use eCOF to clearly show finance options and talk customers through every step.
If we believe a customer does not understand the contract, we will not proceed and will encourage third-party involvement if needed.
6. Monitoring and Reviews
Regular audits are performed as part of our compliance plan to ensure our processes meet the needs of vulnerable customers.
Findings are reviewed with senior management and changes implemented where necessary.
7. Product Design
We ensure that all products, including financial ones, are designed to be inclusive.
When updating materials, we consider the needs of vulnerable customers carefully.
8. Responsibilities
All staff receive training on this policy upon employment and annually thereafter.
Management ensures that support and tools are provided to staff to help identify and address customer vulnerabilities.
We offer emotional support to employees who are personally affected by situations involving vulnerable customers.
What is a Vulnerable Customer?
Any customer who is susceptible to loss or harm and whose situation or capability require us to take additional precautions (when we are selling or promoting our services) to ensure that the vulnerable customer is not disadvantaged in any way.
These vulnerabilities may include (but not limited to):
- Physical or mental disability
- Terminal illness
- Age (elderly or young inexperienced customers)
- Dementia
- Confusion, not retaining information
- English is a second language
- Mental capacity limitations/Debt
- Job Loss/low income
- Low literacy skills
- Induced intoxication by the use of alcohol or illegal drugs
How do we identify vulnerable customers?
Face to Face
Some signs are obvious if you can see your customer. For example, a customer could be blind or deaf, elderly young etc. They may show signs of confusion or inability to retain information by asking the same question repeatedly. Their mannerisms or gestures and facial expressions may tell you they are vulnerable.
On the telephone
They may ask repeated questions or show an inability to distinguish or understand what is being discussed. They may demonstrate difficulty in hearing what is being said or respond with inconsistent answers. Shortness of breath may indicate a physical disability.
What to do if you identify a vulnerable customer
Should this situation arise and it becomes obvious that the information we provide to the customer is not being understood then we should see the involvement of a trusted friend or relative. We will re-appoint and arrange for a trusted friend or relative to be present during the next meeting or before the next agreed telephone call.
It is very important that we follow this procedure before we ask for any contractual commitment from the vulnerable customers. It is much better to provide the customer with more time than it is to 'push' for a decision that may subsequently become a management issue. If in doubt always seek guidance from your manager before acting.
GDPR & the Data Protection Act 2018
Any information gathered will be processed in line with GDPR and the Data Protection Act 2018. Where necessary, explicit consent will be obtained from a customer to enable us to process the details of their vulnerability accordingly. Customers will also be fully informed of how we will process this information.
We will always:
- Ask for a customer’s explicit consent in order to record, store or process the details of their vulnerability, where it is necessary and appropriate to do so
- Clearly explain to the customer why we need to record, store or process the details of their vulnerability
- Clearly explain to the customer who the details of their vulnerability will be shared with
Typically, we would only look to process the details of a customer’s vulnerability where we may need to tailor our approach during our communications with them, or when we are entering their home for the purposes of a sales consultation or installation. We would therefore only share the details of the vulnerability with the relevant staff and representatives.
All staff are provided with the training and tools to identify, understand and deal with vulnerabilities and vulnerable customers, this training is delivered on commencement of employment and is refreshed annually.