There is a hot topic in the money advice industry right now, and that is the topic of vulnerable clients. Working with people who have experienced very difficult circumstances can be extremely challenging for financial advisers. Money problems cause a state of emotional and personal distress that demands a high level of care and service. After all, people don’t seek compromise agreements with their creditors because things have been going well; they look for help because they’ve experienced unexpected — and sometimes permanent — turbulence in their personal life. It goes without saying that such change can be very traumatic.
How is Vulnerability Defined When It Comes to Debt?
What is considered a vulnerable client, and what measures can be taken by advisors to alleviate the stress such clients are under? According to Stepchange, someone who is finding it difficult to address a debt problem because of their personal and financial circumstances is a vulnerable client. The FCA has also published guidelines for vulnerable customers.
Issues that engender vulnerability include, but are not limited to, stress, bereavement, mental health conditions, long-term illness, disability, separation, homelessness, and addiction. This list is not exhaustive, but provides examples of issues that can induce a feeling of helplessness in individuals who are also struggling with debt.
Underlying factors such as these can prevent affected individuals from seeking the help they need. Often, those in need of debt help avoid seeking it out of fear of judgement, embarrassment, or any of the other negative emotions that debt can induce. Some also fear that the people they speak with either won’t take their vulnerability into consideration, or won’t be sufficiently empathetic to understand their unique needs.
This is why vulnerable clients may require additional support and an understanding that vulnerability is a serious consideration. The vulnerability of individuals has always been important in the context of giving good debt advice, but the debt advice industry is now under a greater obligation than ever before to ensure that vulnerability considerations are at the heart of client engagement. Such considerations should also be constantly reviewed and reassessed throughout the client’s journey.
Vulnerability Matters
To ensure this, the Money Advice Trust has provided some useful “vulnerability guidance” to clarify how debt guidance and money advice agencies should treat their vulnerable clients. The Trust’s guidance reflects an increased focus on vulnerability and debt within the industry.
The Trust mentions a recent survey by the Money and Mental Health Policy Institute that highlights the need for advice agencies to improve the way they address clients with mental health conditions. Worryingly, the survey revealed that 35% of respondents believed their mental health problem hadn’t been taken into account, even though they’d informed their advisor about it. The benefits of a more coherent approach within the industry are obvious, but there are plenty of actions individual advisors can take to help vulnerable clients.
The attitude of the advisor is crucial, and building rapport is an essential component of effective client interaction. Vulnerable clients need to trust their advisors, and be confident that their concerns will be addressed in a caring, empathetic, and compassionate manner. Clients also want to be assured that they won’t be judged in any way.
How Can Debt Movement Help?
At Debt Movement, our core values that put our clients first, offering a caring and compassionate approach at all times. We take care to be non-judgmental in our attitude, too. Many of our clients suffer from mental health issues, and we have worked hard to tailor our approach to ensure that each client has the help and support they need throughout their journey to financial freedom.
Our teams at Debt Movement have undertaken some initiatives specifically designed to address the issue of client vulnerability. For example, we have trained staff members to identify potentially vulnerable clients, and provided techniques to identify those in need of help. We have an accredited Mental Health First Aider on hand to assist vulnerable clients (and staff members) who may be struggling. Our teams will always ask vulnerable clients if they’re happy for their vulnerability to be recorded and reported to creditors, so that the totality of their circumstances is acknowledged, communicated, and taken into consideration at creditors’ meetings.
Awareness of vulnerability within the debt advice sector is crucial, and assisting those struggling with debt and mental health problems is vital. If you’re affected by such issues, you can contact Debt Movement today and be sure that our team of friendly and compassionate guides will treat your concerns with the care and empathy they deserve.
