UK Finance data shows 81,900 borrowers faced arrears in Q2 2023, an increase of 7% on Q1, leading LiveMore to warn of the significance of vulnerability, particularly among older borrowers.
The 50 to 90-plus lender recently published a white-paper on the matter, and called on lenders and intermediaries to take note of the Consumer Duty rules around vulnerability.
Which? reported that 2.4 million households missed bill payments in July.
The Financial Conduct Authority (FCA) defined a vulnerable customer as “someone who, due to their personal circumstances, is especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care.”
LiveMore said the onus within the Consumer Duty rules was on firms to identify vulnerability, which can be more prevalent in older age groups where health may be an issue or people have experienced a life event such as losing a loved one.
LiveMore said providers should look further into the future of their clients by considering their longer-term situation and what may happen as customers get older.
Leon Diamond (pictured), CEO and founder of LiveMore, said: “The introduction of Consumer Duty could not be timelier and as an industry we must all take the issue of vulnerability very seriously.
“More people are struggling financially, which can impact their mental health.
“Taking vulnerable customers into account at every stage of developing products and services, will help firms to meet their clients’ needs and avoid causing harm.
“It is also important to have robust processes in place to spot and respond to vulnerability, make customers aware of support available, and have systems to record and retrieve information about customer needs.
“Lenders and intermediaries have a clear role to play in making sure consumers, especially those with any vulnerability, have access to good advice and good outcomes.”
