The debt counseling business of Acme Credit Consultants Ltd means that employees will come into contact with customers who may be experiencing financial hardship on some level. Other categories of individuals who may be considered vulnerable include persons with
1. Change in circumstances
2. Unemployment
3. Long term, low income
4. Low level of financial knowledge/understanding
5. Mental health problems
6. Elderly
7. Young adults
8. Relationship Breakdown
9. Long-term limiting illness or disability
10. Critical illness
11. Sensory impairments
12. Drug or alcohol dependency
13. Gambling addiction
14. Learning difficulties
15. Low literacy Levels
16. Low language Skills
17. Difficulty in communicating
18. Homelessness
19. Bereavement
20. Domestic violence or threats
21. Victim of crime/fraud (e.g. identity theft)
In order to address the needs of vulnerable customers correctly, it is important to be able to identify them as early on in the process as possible. Risk factors can include the factors mentioned above. Having more than one risk factor present will increase the level of the consumer’s vulnerability.
Our employees need to stay alert to signs that the person they are talking to may lack the capacity, at that moment, to make an informed decision about the agreements they must make. This does not diagnose a condition; it simply extends staff’s existing skills of listening, identifying needs, and adjusting their approach accordingly.
Being asked to speak up or speak more slowly
Can they hear the complete conversation or are they missing important bits?
Do they understand what you are saying?
They appear confused
Do they understand what is being discussed?
Acme Credit Consultants Ltd will work positively with vulnerable customers, treating them with forbearance, giving additional time to compile information if necessary, and carefully managing any future communications strategies.
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
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.
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.
The Mental Capacity Act 2005 sets out the legal framework concerning mental capacity. The Ministry of Justice 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 they make a decision unless the firm knows or should reasonably expect that the customer lacks capacity. Having limited mental capacity does not necessarily mean the customer cannot make a decision.
The most common causes of mental capacity limitations include a mental health condition, dementia, a learning difficulty or developmental disorder, a neurological disability, a brain injury, or alcohol or drug abuse.
One in six British adults has a mental health problem. Some customers who fall into financial difficulties may experience mental health issues either because financial hardship affects them or because these issues disrupt their ability to function, causing financial hardship for a short period or permanently.
1- We have an existing relationship with the customer and the customer’s decision appears to be out of character.
2- A relative, close friend, career, or similar brings it to our attention
3- Where we know or have reason to believe the customer has been diagnosed with a particular condition
4- Where we know or have reason to believe the customer does not understand what s/he is applying for
5- The customer seems unable to understand the information and explanations we are giving
6- The customers seem to have difficulty in retaining the information and explanations
7- The customer is unable to communicate a decision to borrow by any reasonable means
8- The customer appears confused about the personal information that we require, such as date of birth or address.
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 endeavor to adhere to the following practices:
→ Not to discriminate against the individual.
→ Not to inappropriately deny a service
→ 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 recognize 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.
Acknowledge
Inform and request consent to record the information
Provide a Data Protection Statement
1) Does your mental health affect your financial situation? If yes, can you send in proof of this from your doctor or other medical professionals?
2) Does it affect your ability to deal or communicate with us or other third parties?
3) How would you prefer us to contact you (in writing or by phone or by email)?
4) 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.