Being in a vulnerable situation can take many forms. It might mean facing a sudden health diagnosis, going through the emotional and financial strain of a relationship breakdown, or struggling with the loss of a loved one.
It could be dealing with job loss and the uncertainty of making ends meet, feeling isolated due to mental health challenges, or becoming a carer for a family member and having to juggle responsibilities you never expected. Even navigating major life changes – like moving to a new city or starting over after redundancy – can leave us feeling exposed and in need of support.
When we find ourselves in these situations, we may find that we’re not as physically and mentally capable as normal, and may even find ourselves in need of some support.
The Financial Conduct Authority’s (FCA’s) Consumer Duty was first introduced to improve standards of care across the financial services sector, with a focus on those who find themselves in a vulnerable position. Yet Smart Money People research showed that 81% of customers in a vulnerable situation had seen no improvement in the way they were treated by financial services providers. This is really telling and shows that much more needs to be done across the financial services sector.
Separate research found nearly a fifth (18%) of brokers found that over a quarter of their clients are vulnerable, and nearly half (47%) of brokers expressed a need for deeper understanding around the importance of identifying customers experiencing these situations.
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What I found particularly striking is that two-fifths (38%) of brokers told us that their clients didn’t feel comfortable disclosing any potential vulnerabilities and nearly the same number (36%) thought it would have a negative impact on their mortgage application.
It’s really important that the industry pays attention to these results and starts thinking about ways they can implement changes that will make life easier for customers. I also want to encourage anyone who does currently find themself in a vulnerable situation to speak up about this.
Top tips for how to speak to a financial services provider about your vulnerability situation
- Ask for help: Asking for help is not a sign of weakness. It’s a recognition that, in your current circumstances, you might find things slightly trickier to do by yourself than you normally would. Everyone goes through challenging times, and it’s important to recognise when you need a little extra support. Whatever financial services provider you’re dealing with, whether it be mortgage brokers or not, they’ll be there to support you along the way.
- Be clear about your situation: Before reaching out, make sure you’ve thought about what exactly it is you want to say and the type of additional help you might need. Maybe you’re suffering from a medical condition or are particularly stressed about your finances – whatever it may be, think carefully about what it is you want to disclose. Being upfront about your situation helps the provider offer the most relevant advice and solutions.
- Keep records of conversations: Try to keep hold of all of the records of conversations you have with your financial services providers. If you’ve sent an email outlining your current situation, make sure you save it in a safe space. Also note down the name of the person you‘re talking to, in case you ever need to refer back to it. Plus, keeping track of your conversations can help you feel more organised and in control of the situation.
- Follow up if you need to: If you feel like you’re waiting too long or haven’t received a reply, don’t hesitate to follow up. Your situation is important, and staying in touch can help to ensure that your concerns remain on their radar. A polite follow-up email or phone call can help clarify the next steps and keep the process moving forward.
- Remember, you’re not alone: Many people face financial challenges, and support is available. Taking the first step by reaching out can help you to regain control and find a solution that works for you.
Jacqueline Dewey is the CEO of Smart Money People
