Vulnerability and Debt: We Can Help

 

Dealing with debt is always hard. The worries around money can feel overwhelming: providing for a family, meeting your bill payments, and simply making ends meet. That worry is bad enough. The impact on emotional well-being and mental health is well documented, and that, in turn, can even take a toll on physical health. How much worse must everything feel if the person is already unwell, suffering from a learning difficulty, or otherwise vulnerable?

What is a Vulnerability?

Many kinds of vulnerability can severely impact someone’s capacity to manage money, especially when their circumstances are challenging or complicated. For example, twenty-five percent of people with mental health issues also have problems with debts.

And, although they’re widespread, it’s not just mental health problems. There are so many kinds of vulnerabilities. Many long-term health issues are vulnerabilities where finances are concerned – earning capacity can be affected plus prescriptions and travel to appointments has a financial impact. Other vulnerabilities may be life events, which could include relationship breakdowns or bereavement. All these situations can be a dreadful strain on mental and physical health. Debt problems can make everything seem so much worse.

What Vulnerabilities can be Registered?

The Vulnerability Register Service doesn’t limit or apply a strict definition to ‘vulnerable’, though the system can provide more details about someone’s vulnerable situation. Giving details ensures companies have all the information to treat you in the right way.

The Financial Conduct Authority defines vulnerable customers as those who, due to personal circumstances, are especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care and goes on to explain that upwards of 27 million UK adults have ‘characteristics of vulnerability’. To put that in perspective, that’s just under half the entire UK population. You really are not alone.

 

Anyone Can be Vulnerable

According to Fair4All Finance, set up by a government department, so many people are living in financially vulnerable circumstances because causes of financial vulnerability are wide-ranging and can affect anyone. From illness or injury, low or irregular income, a lack of savings, and unexpected life events like job loss, bereavement, or divorce. Fair4All Finance considers adults to be financially vulnerable if they have:

• Experienced financial difficulties in the last two years.
• Been without permanent housing or lived in council/social housing in the past two years.
• Have an annual household income under £25,000 or essential expenses beyond their income.
• Had to use alternative financial services in the last two years, like credit unions, Community Development Finance Institutions (CDFIs) or ‘pay day’ loans.

As you can see, financial vulnerability really could affect almost anybody. There’s no need at all to feel bad or embarrassed. In fact, those feelings often stop people getting the advice and even help they need. The help which can

When confidentially registering vulnerability, customers can give more in-depth information about their vulnerability, such as:

• Mental illness such as extreme anxiety or depression – 13.1 million people suffered in the year to July 2021.
• Domestic violence or an abusive, controlling partner.
• Caring for a poorly child or child with additional needs, or elderly relative.
• Physical illness or incapacitating injury
• Learning differences or difficulties
• Cognitive disorder
• Bereavement, relationship breakdown or other life event – 8.8 million people suffered in 2021.
• Serious financial hardship or capacity which affected 9 million people in 2021.
• Gambling addiction
• Anything which may negatively affect a person’s ability to deal with their finances

As members of the Vulnerability Register Service, we can speak with the person who registered the information to understand the situation fully.

 

Why Register a Vulnerability?

Dealing with debt is tough. Taking action or asking for help to help can be difficult – it’s hard to know where to start or who to turn to. Sometimes, it gets harder. For example, vulnerabilities can arise from a serious or chronic illness, divorce, redundancy, or because of serious financial difficulties.

Imagine having to approach everyone you need to pay: utilities suppliers, other household bills, rent or mortgage payments, loan or credit repayments, mobile phones and Internet, insurance, pensions and general purchases. At a time when you’re already stressed and overwhelmed anyway, this could be hard to face. But, for whatever reason you’re struggling, or feeling vulnerable, these organisations need to be aware of your current circumstances. That way, you can be treated fairly and have access to the help and support you need.

What is the Vulnerability Register Service?

The Vulnerability Registration Service enables vulnerable people to register their status, just once. This allows them to avoid repeating the same difficult conversations every time they engage with organisations like lenders and creditors. The Vulnerability Register Service is a Not-for-Profit organisation, set up to help vulnerable consumers. The VRS aims to help vulnerable people, who are struggling with their debts, protect themselves against further hardships due to debt and financial problems.

The VRS conducted research which showed:

• Around 18 million people in the UK consider themselves vulnerable.
• 38% of women and 29% of men believe they’re vulnerable.
• 41% of vulnerable customers say they’ve been unfairly treated.
• 15% of UK adults have had difficulties communicating with organisations.
• 25% of vulnerable customers spend up to six months attempting to inform organisations about their vulnerability.
• 20% of vulnerable customers have still been chased for payments.

Registering a vulnerability properly can make everything so much easier. UK Debt Service is proud to be a member of the Vulnerability Register Service. We can be alerted to someone’s situation and any vulnerabilities which need to be taken into consideration. It also means we can help people register.

 

 

We Can Help You Find Support

It’s so important to know that you really don’t need to struggle on alone. Not only is there help available offering advice and practical help around debt, but you can also register any vulnerabilities. The Vulnerability Registration Service allows people to register their vulnerabilities, all in one place and at one go. It’s entirely free to register and avoids the need to contact several companies. This means there’s no having to repeat the same information over and over again, likely feeling very uncomfortable in doing so. Registering a vulnerability means that those who are struggling are treated fairly and ethically by the organisations they have to deal with. The VRS also provide training to companies around vulnerability awareness and consumer duty, further ensuring that vulnerable people are looked after.

Vulnerability can arise from a wide range of factors and by registering their particular circumstances, those who are struggling can signal to relevant organisations that their ability to manage their financial responsibilities may be affected. This should facilitate tailored and empathetic support, without any duress or judgment.

 

Sense and Sensitivity

Discussing sensitive issues like mental health or financial struggles repeatedly with different companies, creditors, or other service providers can be stressful and emotionally draining – and especially so if they’re not trained or equipped to deal with vulnerabilities. The Vulnerability Register Service acts as a single point of reference, allowing individuals to inform lenders of their status without enduring the difficulty of explaining their situation multiple times.

When organisations are aware of a customer’s vulnerabilities, they are better equipped to treat them fairly, ethically and sensitively. For instance, creditors can devise repayment plans or offer additional support services that respect the individual’s needs and limitations. Registering on the Vulnerability Register Service empowers vulnerable people to be proactive and help protect themselves from worsening financial difficulties. It acts as a safeguard, ensuring that their challenges are considered and their situations respected.

Please don’t hesitate to contact us. As proud  member of the VRS, we can help you to access the support you need, to register with the VRS and to signpost you to other sources of help, advice, and support. Registering a vulnerability helps individuals receive the support and consideration they need. Challenging times can happen to anyone, at any time – and, with the VRS, we can help you stop money problems from getting worse.