64% of vulnerable customers would share data to central system

According to research commissioned by the Vulnerability Registration Service, one in five vulnerable customers are still being chased for payments or debt.

In addition to this, 18% of customers considered vulnerable by the Financial Conduct Authority (FCA) have missed payments or gone into arrears, with 14% taking on further debt as a result of being vulnerable or falling into vulnerable circumstances within the last 12 months.

Its estimated that 17.7 million people in the UK considered themselves vulnerable, with 13.1 million people saying they have experienced mental health struggles within the last 12 months. Meanwhile, in the last year, nine million people said they struggled to cope with finances and managing money, and 8.8 million people have been impacted by a life event such as the breakdown of a relationship, bereavement or a job loss.

As part of the research it commissioned, the Vulnerability Registration Service surveyed 2,004 UK adults and found 15% of the country’s population find it difficult communicating with organisations - such as speaking on the phone, accessing the internet or physically visiting branches or outlets. Alongside this, 57% of vulnerable customers spent more than two weeks trying to make organisations aware of their health circumstances.

The Vulnerability Registration Service’s chief executive Helen Lord said: “These findings should act as a wake-up call. It simply isn’t good enough that so many vulnerable customers feel they are being unfairly treated.

“One in five vulnerable customers have continued to receive calls, emails or visits chasing up payments or for debt collection. This is unacceptable when you consider the fact that 31% of all the UK population have experienced some form of mental distress after being chased by organisations for missed payments or debt.”

As for when vulnerable customers have informed organisations about a vulnerability, the experiences have been mixed - with 29% finding it difficult to locate the right person or department to talk to. For 32% of these respondents, they were passed around to different people, simply kept on hold or subjected to automated messages.

Meanwhile, 37% found it difficult to have to keep repeating their circumstances to different departments within different organisations. However, 29% did say that when they told an organisation about a vulnerability, it was acted upon and they were provided with help and support. Amongst those that wouldn’t tell an organisation about a vulnerability, 24% said it was because they didn’t think it would make a difference.

Despite a reluctance on the part of many in making organisations aware of their vulnerability, 63% would share details about this if they were asked, while 67% of people in the UK believe organisations should be proactive and carry out checks to identify the vulnerable. Meanwhile, 63% of people agree they would complain if they felt that they or a member of their family was unfairly treated because of a vulnerability.

In addition to this, nearly two in three vulnerable adults would consider registering with a free service if it took on the task of flagging their circumstances on their behalf to other organisations, while 64% would consider letting details of their vulnerability be shared if it meant that they were better supported and treated fairly.

Lord added: “Organisations must be more proactive. The only way to identify and protect the vulnerable from these experiences and further harm is to share data about them across sectors, and make checking for vulnerability a standard practice, like credit reference or affordability checks already are.

“The tools to make this happen already exist. If organisations truly are serious about treating vulnerable customers fairly, it is time to come together and move beyond words and guidance to action.”