The Analysis News & Opinions
‘Half of adults show at least one sign of vulnerability’
Half of UK adults – equivalent to 25.6 million people – display one or more characteristic that signals their potential vulnerability, according to research published by the Financial Conduct Authority (FCA). The Financial Lives report found that these
people may be at increased risk of harm, or would suffer disproportionately if harm occurred, although potential vulnerability did not mean that all people with these characteristics would suffer harm. For all age groups assessed in the research,
the proportions showing characteristics of vulnerability were around the national average of 50%. The exception was the 75 and over group, where the proportions showing vulnerable characteristics were higher: 69% for the 75s and over, and 77% for the 85s and over.
Andrew Bailey The highest proportion (77%) of those
with these characteristics was found among the unbanked, and among the unemployed
Creditor to reimburse customers in redress
BrightHouse has announced a customer- redress scheme following a review of past business practices. The company said it had worked closely with the FCA for more than two years to address issues identified with some of its legacy processes. Chief executive Hamish Paton said: “We
are absolutely determined that this does not happen again and have made significant improvements over the last 18 months. “The FCA recognised this when they
confirmed in April that they are minded to authorise our business, subject to specific conditions.” Two groups of customers are included in
the scheme which was developed following engagement with the FCA and independently reviewed. The first group is those who, between April 2010 and April 2017, may not have received a refund of their initial payments when an agreement was cancelled within the first 14 days.
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who are looking for work. Women account for the larger number of those with these characteristics, compared with men (46%), as 53% of UK women are potentially vulnerable. Other findings included that: l Single parents aged 18 to 34 were three times as likely to use high-cost loans: 17% compared to the UK average of 6%. l The FCA found that 13% of 25 to 34 year olds were in difficulty, because they have missed paying domestic bills or meeting credit commitments in three or more of the last six months. l Just 35% of those aged 45 to 54 have given serious thought as to how they will manage in retirement. l Those aged 65 and over are least likely to check if an internet site is secure before giving their bank or credit-card details. Last month, Andrew Bailey, chief
executive of the FCA, in an interview with the BBC, said that he was concerned about a “pronounced” build up of debt among young people, which was being used to pay for basic living costs. The warning coincided with new
Insolvency Service figures showing the number of 18 to 34 year olds becoming insolvent rose by nearly a third between 2015 and 2016. Joanna Elson, chief executive of the
Money Advice Trust, said: “Andrew Bailey is absolutely right to highlight the growing debt burden on young people – often to meet basic livings costs. “While this trend may not yet be
considered a risk on its own, to the economy as a whole, debt problems at such an early age can have a huge impact on the individuals involved.” Financial Lives is the FCA’s largest tracking
Hamish Paton The second consists of those who took out
an agreement between April 2014 and September 2016 and where affordability assessments might not have been effective enough. The total value of the scheme to customers is £14.8m.
www.CCRMagazine.co.uk
survey of consumers and their use of financial services, drawing on responses from just under 13,000 UK consumers aged 18 and over. The aim of the survey is to provide
the FCA with insights into people’s experiences of retail financial products and services.
November 2017
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