Vulnerable Customer Support

The Financial Conduct Authority (FCA) estimates that more than 50% of adults in the UK could be classed as “vulnerable”, even if they don’t view themselves that way.

At Echo Finance, we understand that people who fall into this category might need extra support when applying for a mortgage, and we are proactive when it comes to proving it.

Who is classed as a vulnerable customer?

The FCA defines 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." We have adopted this definition at Echo Finance.

The support we can offer will depend on the type of vulnerability the customer has. This could be permanent or temporary and would broadly fit into one of the below categories:

Health

A health condition of illness that impairs their ability to carry out day-today tasks, such as:

• Physical disability

• Severe or long term illness

• Hearing or visual impairment

• Poor mental health

• Addiction

• Low mental capacity or cognitive impairment

Resilience

This refers to a low ability to adapt to financial or emotional shocks. For example:

• Low or erratic income

• Over-indebtedness

• Low savings

• Low emotional resilience

Life events

A negative life event that puts the customer in a vulnerable state, such as:

• Income shock, e.g. retirement, job loss, redundancy or reduction in hours

• Bereavement

• Relationship breakdown

• Domestic abuse

• Caring responsibilities

• Criminal convictions

• Care leavers

• Refugees or asylum seekers

Capability

This refers to a low capacity to understand financial matters for reasons including impaired numeracy, literacy and digital skills.

• Low knowledge or confidence in managing finances

• Poor literacy or numeracy

• Low English skills

• Learning difficulties

• No or low access to help or support

What support we can offer

Our mortgage brokers and financial advisers are specially trained to offer a bespoke service to vulnerable customers. If necessary, we can provide the following tailored assistance:

• A choice of communication preferences: We are happy to complete client consultations through their preferred channel and make any required adjustments if they have accessibility needs. Our brokers can also work with assistive technology and give them extra time to complete our processes, if necessary.

• Flexible mortgage advice: Our advisers will recognise vulnerable customers’ needs and respect any additional requirements they might have. This may include offering a flexible mortgage journey and making exceptions to some steps in the process.

• Finding the right lender: Sometimes this doesn’t just mean identifying the lender offering the best deal, but placing the client with one who has the flexibility and understanding to meet their individual needs. Some lenders we work with even offer support services to help clients who are financially vulnerable or in financial difficulty.

We will always aim to be accommodating to vulnerable customers and respect the specific needs they make us aware of, where possible.

If you believe you fall into this category, please let us know during your initial consultation. A note will be made on your file and there will be no need to raise the matter again at any point on your mortgage journey as this information will be relayed to any potential lenders.

How we identify vulnerable customers

Our mortgage brokers and admin team are always supportive and non-judgemental when serving vulnerable customers. Some of these customers openly tell us about their vulnerability so we can meet their needs from the start, but this isn’t always the case.

According to the FCA, around 76% of adults with vulnerable characteristics don’t identify this way, which is why the Echo team has been trained to pinpoint customers who may need extra support.

Signs they look for when communicating with customers over the phone include:

• Confusion or difficulty understanding them

• Struggling to answer basic questions

• Appear to be intoxicated or under the influence of alcohol

• Repeatedly asking the same or similar questions, or asking unrelated questions

• Appearing agitated or upset

Signs they look for when communicating in writing or by email include:

• Writing in a disjointed manner, or a change in writing style compared to earlier correspondence

• Making unusual or erratic decisions

• Stating that they have assistance from someone else with basic decision making

• Saying they are confused or don’t understand

• Being unable to recall information previously provided

Echo Finance always abides by the guidelines laid out by the Financial Conduct Authority on the fair treatment of vulnerable customers, which you can read in full here.