Vulnerable Customers

In order to address the needs of vulnerable customers correctly, it is important to be able to identify them. Risk factors can include bereavement, illiteracy, illness, disability or other impairment. In many cases, more than one risk factor is present which increases the consumer's vulnerability.

Our team, particularly our customer facing colleagues need to be alert to the signs that the person they are talking to may not have the capacity, at that moment in time, to make an informed decision about the implications of the agreements that they are being asked to make. This is not a diagnosis of a condition; it is just an extension of staff's existing skill of listening, identifying needs, and adjusting their approach accordingly.

The Mental Capacity Act says that a person is unable to make a specific decision if they cannot understand information about the decision to be made, cannot retain that information in their mind, cannot use or weigh that information as part of the decision-making process, or cannot communicate their decision.

Possible Indicators of vulnerability

• Being asked to speak up or speak more slowly
• Being asked to speak up or speak more slowly
• Being asked to speak up or speak more slowly
• They appear confused
• Do they know what is being discussed?
• Do they ask unrelated questions?
• Do they keep wandering off the point in the discussion and talking about irrelevancies or things that don't make sense?
• Do they keep repeating themselves?
• Do they say' Yes' in answer to a question when it is clear they haven't listened or understood?
• They take a long time to get to the phone and sound flustered or out of breath, indicating they may have a lack of mobility due to age or illness
• They take a long time to answer questions. They say "My son/daughter/wife/husband deals with these things for me"
• A language barrier exists since they may not fully understand what is being said to them.
• They say that they don't understand their bill, a previous phone conversation or recent correspondence.

Practical tips when talking to vulnerable consumers

• Speak clearly and enunciate
• Set expectations for the call - outline all the information that will be required - account numbers, personal details, etc. - and how long the call is likely to last
• Be patient and empathise
• Don't rush them - if they need to put the phone down to find account details, be aware that it could take them some time.
• Guide the call to keep it 'on topic'.
• Don't assume that you know what the consumer needs - it's easy to rush through if the consumer is slow or not able to explain what they need.

Mental Health Issues

The Mental Capacity Act 2005 sets out the legal framework concerning mental capacity. The Ministry of Justice has issued the Mental Capacity Act Code of Practice.

Mental capacity is a person’s ability to make a decision. It is reasonable to assume a customer has mental capacity at the time the decision is made unless the firm knows or should reasonably expect that the customer lacks capacity. Having limited mental capacity does not necessarily mean that the customer lacks capacity to make a decision. The most common cause of mental capacity limitations are: a mental health condition; dementia; a learning difficulty or development disorder; a neurological disability; a brain injury; alcohol or drug abuse.

It is estimated that one in six British adults has a mental health problem.  Some customers who fall into financial difficulties may have mental health issues either as a result of being in financial hardship or it may cause their financial hardship as their ability to function may be disrupted for either a short period or permanently. 

Possible Indicators of Mental Capacity Limitations

• We have an existing relationship with the customer and the customer’s decision appears to be out of character
• A relative, close friend, carer or similar brings it to our attention
• Where we know or have reason to believe the customer has been diagnosed with a particular condition
• Where we know or have reason to believe the customer does not understand what s/he is applying for
• The customer seems unable to understand the  information and explanations we are giving
• The customers seems to have difficulty in retaining the information and explanations
• The customer is unable to communicate a decision to borrow by any reasonable means
• Customer appears confused about personal information that we require, such as date of birth or address.

Jay City Finance’s Policy

It is our policy to ensure that we treat customers who have mental capacity limitations with respect and consideration. Therefore, in our dealings with such customers, we will endeavour to adhere to the following practices:

• Not to discriminate against the individual
• Not to inappropriately deny a service or credit
• Assist the customer to make an informed decision
• Ensure the lending decision or debt solution is responsible and is based on a reasonable assessment of affordability and in the best interests of the customer
• Ensure communications are clear and jargon free
• Make a reasonable assessment of the customer’s ability to understand and retain the information
• Allow the customer sufficient time to make a decision

Staff will be trained to recognise and encourage a customer to disclose any issue, including mental health, and whether this is affecting their ability to repay the debt.  In all instances where a disclosure is made, the customer’s consent to record this information on our systems is obtained and the customer will be advised of how this information will be used. Customers will be requested to provide medical evidence, where necessary.

In the event that a customer does make a disclosure, staff MUST:

• Acknowledge
• Inform and request consent to record the information
• Provide a Data Protection Statement

Ask appropriate questions:

• Does your mental health affect your financial situation?  If yes, can you send in proof of this from your doctor or other medical professional?
• Does it affect your ability to deal or communicate with us or other third parties?
• How would you prefer us to contact you – (in writing or by phone or by email?)
• Does anyone help you manage your finances such as a family member - If yes; do you want us to deal with this person on your behalf?  Consent must be noted on the system.

Further Information can be obtained from The Money Advice Liaison Group [MALG]- Good Practice Awareness
Guidelines – For Consumers with Mental Health Problems and Debt.

www.moneyadvicetrust.org/images/Mental_Health_Guidelines_2009.pdf

Utilise TEXAS methodology – Thank / Explain / eXplicit Consent / Ask / Signpost