In Focus Consumer Credit


Vulnerability – a radical approach?


The industry needs a clear approach to vulnerability, so as not to treat everyone with disabilities as vulnerable


Andrew Jackson Head of servicing, collections & recoveries, Europe, Funding Circle andrew.jackson @fundingcircle.com


Everyone is vulnerable: me, you, your employees, our customers. We all carry with us the scars of growing up, and a brain chemistry that can turn on us at any time. We have all been fragile, and weak. We have experienced pain and bereavement, and our mistakes (conscious or unconscious) have lost us money, authority and friends. It is no surprise that, since everyone is


vulnerable, the debt industry has struggled to define vulnerability. Any self-respecting collections team


understands that every situation is different, and that this is nowhere more relevant or important than for vulnerable people. However, for training, reporting, and to


facilitate fair treatment, collections teams need a clear definition of vulnerability. The confusion arises since vulnerability


can be defined as someone claiming to suffer from one of a list of medical conditions; and/or who can be manipulated due to their weak negotiating position; and/or who is unable to deal rationally with discussions about debt for whatever reason; and/or any one of us under too much pressure.


A radical approach To cut through this confusion, I would suggest that a vulnerable person is someone who experiences physical and mental pain or fear of pain in respect of the payment of their debt. Where the commercial activity of a


collections team causes people to experience pain, or real fear of pain, they need to have very different treatment pathways.


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would not include pain of the soul here, being a non-believer). As a civilised society, we have long


Whilst this creates clarity for debt collectors, I want to live in a society that recognises human life as lucky or unlucky, and imposes a moral duty on the lucky ones to help those who find themselves on the bleaker face of the dice


We need to over-compensate for their


vulnerability. Such over-compensation is off-set by a wider definition of people who are not vulnerable, but who nevertheless should be treated in a fair and appropriate way for their individual circumstances. In the US, it is unlawful to treat vulnerable


debtors any different to non-vulnerable debtors. There is a law against preferential treatment of any group of people no matter how defined. Whilst this creates clarity for debt


collectors, I want to live in a society that recognises human life as lucky or unlucky, and imposes a moral duty on the lucky ones to help those who find themselves on the bleaker face of the dice.


Distressing pain or fear of pain In my definition of vulnerable, ‘pain’ is both mental pain and physical pain together (I


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ditched capital punishment in the court system, schools, and families. This is because causing physical trauma


to another human being breaks emotional bonds and results in anti-social behaviour repeating itself through generations. Levels of pain is a spectrum but physical


pain that is more than mere discomfort, for the purposes of vulnerability, will carry with it mental or psychological pain too. Mental pain is no different to physical


pain in its symptoms and effect on a person’s judgment and quality of life. Real anguish that causes fear, depression,


suicidal-thoughts, panic attacks, debilitating anxiety, sorrow or other forms of mental pain is a type of torture. Mental pain that is more than mere


frustration or anger will carry with it a physical pain too. It will psychosomatically manifest through muscle aches, joint pains, nausea, skin conditions, heart rate, exhaustion and so forth. The threshold for vulnerability in debt


collection must be where both mental and physical pain (or fear of) results from the discussions or communications relating to debt or to the actual payment of the debt. It is horrific and depressing to think that


anyone would willingly cause real pain to another human being, or openly allow these symptoms to become worse, simply for the sake of increasing a cure rate or recovery rate or getting a bonus at the end of the month.


October 2018


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