About consumers in vulnerable situations

The Financial Conduct Authority defines a ‘vulnerable consumer’ as 'someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.'

Vulnerable personal circumstances may include (but are not limited to): experiencing health problems (either physical or mental; short or long term); emotional distress or bereavement; having a physical disability; having limited understanding of English or low basic skills; suffering from an addiction, or being a carer for someone with a range of conditions.

Finances play a significant and essential role in our lives, and as citizens we are expected to take greater responsibility for our personal finances and ensuring our own financial wellbeing. In an increasingly financialised society people in vulnerable situations are often more at risk when dealing with service providers, and are more likely to suffer detriment than the notional ‘average’ person. While examples of good practice exist, many financial service providers are not treating vulnerable people consistently or, in some cases, fairly. Policymakers and providers have a duty to ensure that all consumers are adequately served and protected. Ensuring vulnerable consumers are treated fairly, consistently and with sensitivity has become a growing priority for regulators and service providers alike.