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Vulnerable Customer Rights

If you're in a difficult situation, you have extra protections.

#What Makes Someone "Vulnerable"?

The Financial Conduct Authority (FCA) defines vulnerability broadly. You may be considered vulnerable if you have:

#Health Conditions

  • Physical disability or illness
  • Mental health conditions (depression, anxiety, etc.)
  • Cognitive impairments
  • Severe or long-term illness

#Life Events

  • Bereavement
  • Divorce or relationship breakdown
  • Job loss
  • Caring responsibilities
  • Domestic abuse

#Financial Difficulties

  • Low income or irregular income
  • Over-indebtedness
  • Low savings / no financial cushion
  • Reliance on benefits

#Capability Factors

  • Low literacy or numeracy
  • English as a second language
  • Limited digital skills
  • Lack of financial knowledge

#What Extra Protections Do You Have?

#Banks and Lenders Must:

  • āœ… Identify signs of vulnerability
  • āœ… Respond with appropriate care and flexibility
  • āœ… Ensure products and services are suitable
  • āœ… Provide clear communications you can understand
  • āœ… Offer extra support when needed
  • āœ… Not take advantage of your situation

#If They Fail:

Their failure to recognise and respond to vulnerability can be:

  • Grounds for upholding your complaint
  • Evidence of irresponsible lending
  • A factor in calculating compensation
  • Reason for FOS to find in your favour

#How Vulnerability Strengthens Your Claim

#Irresponsible Lending Claims

If you were lent money while:

  • On benefits
  • Already in debt
  • Showing signs of financial distress
  • In poor mental health

ā†’ The lender should have done more checks and likely shouldn't have lent to you.

#Overdraft & Bank Charge Claims

If the bank could see:

  • Your account was constantly overdrawn
  • You were receiving benefits
  • You had gambling transactions
  • You were in a debt spiral

ā†’ They should have intervened, not kept charging fees.

#Pension & Investment Claims

If you were:

  • Approaching retirement with limited options
  • Not financially sophisticated
  • Pressured into a quick decision
  • Not given time to consider

ā†’ Stronger case for mis-selling.

#How to Mention Vulnerability in Your Complaint

You don't need to over-share, but mentioning relevant circumstances helps. Examples:

"At the time of this agreement, I was suffering from depression and was not in a position to fully assess the suitability of this product."

"I was on Universal Credit throughout this period, which should have been visible from my bank statements. The bank should have recognised I could not afford repeated overdraft charges."

"Following my redundancy in [month], I was in significant financial difficulty. Despite this, I continued to receive credit limit increases."

"As a non-native English speaker, I did not fully understand the terms I was agreeing to, and no additional support was offered."

#Extra Support Available

#When Complaining

  • You can ask for communications in large print, audio, or simple language
  • You can have someone help you (family member, friend, or advocate)
  • You can request extra time to respond
  • You can ask for phone calls instead of letters (or vice versa)

#From Ombudsman Services

  • FOS has a dedicated vulnerable customer team
  • They can arrange callbacks at times that suit you
  • They can communicate through a representative
  • They take vulnerability into account when making decisions

#Free Help

#Sample Vulnerability Statement

Add this to any complaint where relevant:

Relevant Circumstances

I wish to make you aware that [at the time of the events described / currently], I was/am experiencing [brief description of circumstances, e.g., "significant mental health difficulties" / "financial hardship due to job loss" / "a bereavement that affected my ability to manage my affairs"].

Under FCA guidelines, firms must take particular care with vulnerable customers. I believe this was not adequately considered in my case.

#Key Points