CSA calls for inconsistencies around consumer vulnerability to be addressed

It comes after the trade association published a discussion paper titled Vulnerability: The Inconsistency Problem, focusing on the changing landscape of vulnerability policies pursued by different organisations and sectors in the UK.  

In particular, it looked at the how the definitions of vulnerability are evolving, the ways these vulnerabilities can be recorded, whether they ought to be evidenced by customers or self-identified, and the differing levels of regulatory enforcement.  

The paper also seeks views from practitioners, focusing on areas such where the most significant gaps are between sectors in terms of the treatment of vulnerable costumers, what the viable solutions for reducing the burden of reporting for consumers are, and what the best practice of the future look like.  

Off the back of this, the CSA is recommending that all regulators should be clearer and more consistent about the consequences of failure to provide appropriate treatment to vulnerable customers, and is also calling on the government to likewise adopt the same standards within its own jurisdiction.

The report’s author and CSA head of regulatory impact Daniel Spenceley said: “Helping those with vulnerabilities is thankfully a far more prominent priority for most service providers and sectors these days.  

“But there are still big differences between utilities, financial services, SMEs and the public sector – which makes it a complex task for organisations and customers who interact across all these boundaries. We want to encourage policy-makers and regulators to raise their sights and look at how other services treat those with vulnerabilities, because at the very least they might learn lessons about good practice.

  
“Not all services are the same, and different types of vulnerability need to be prioritised by different creditors, especially if the ceasing of a service would be particularly detrimental. We hope that this discussion paper can help stimulate new policy thinking that raises standards across the board.”