Vulnerability has been a key issue of the FCA forming part of their wider Business Plan to reduce harm and protect consumers. The Consumer Duty talks directly to vulnerable customers placing more emphasis on management information to monitor good outcomes more effectively.
The FCA has gone a step further in making changes to CONC 5’s Creditworthiness section by adding the need for firms to identify customers in financial difficulty, and those customers in vulnerable circumstances.
This isn’t new however this dials up the need for firms to ensure that this is captured earlier in any creditworthiness assessment.
If you or your Firm need support with credit risk, affordability and moreover creditworthiness assessments our expert team are here to help.