1 Introduction
1.1 Objective
At Buoyant Group Limited Trade as Pay Weekly Carpets (PWC) and this policy applies to all employees who represent The Buoyant Group and Pay Weekly Carpets.
We recognise the importance of having a clear, effective, and appropriate policy in place to support the way in which we manage and handle any customers identified as vulnerable.
PWC recognises that anyone can become vulnerable at any time and it can be caused or exacerbated by the actions or processes of a firm, which is why we employ this policy to ensure that all employees who are exposed to customer contact or employed in product development are aware of PWC’s approach towards those customers whose circumstances may indicate they are vulnerable or are currently experiencing vulnerable circumstances. We want vulnerable customers to experience outcomes as good as those for other customers and receive consistently fair treatment.
PWC are committed to delivering good outcomes for Vulnerable customers to achieve this we will.
- Understand the nature and scale of characteristics of vulnerability that exist in our target market.
- Ensure staff have the right skills and capability to recognise and respond to the needs of vulnerable customers.
- Respond to customers’ needs throughout the product design, offer flexible customer service provisions and communications.
- Monitor and assess whether we are meeting the needs of our customers and make any improvements where we find this is not happening.
PWC’s primary objective is to pay due regard to the interests of its customers and treat them fairly. We understand the need for “fair and appropriate treatment of customers, who the firm understands or reasonably suspects to be particularly vulnerable.” (CONC 7.2.1).
PWC is committed to the principles within the FCA Handbook, and places particular emphasis on the principle that a firm ‘must pay due regard to the interests of its customers and treat them fairly’. Treating Customers Fairly (“TCF”) is at the core of our business model and is integral to all our policies and procedures.
1.2 Regulatory References
- Mental Capacity Act 2005
- Equality Act 2010
- FCA Handbook
- FCA PS14/3 detailed rules for the FCA regime for consumer credit
- FCA Consumer Credit Sourcebook (CONC)
- FCA Occasional Paper No. 8 – Consumer Vulnerability
- FCA Guidance on the fair treatment of vulnerable customers (published in February 2021)
1.3 Scope
This Policy covers PWC’s regulatory requirements and best practice for how employees handle and manage vulnerable customers and is applicable to all employees including contractors and employees in product design and development.
For the purposes of this policy vulnerable consumers are customers and prospective customers whose ability or circumstances require us to take extra precautions in the way that we sell and provide our services to ensure that they are not disadvantaged in any way.
2 Governance
2.1 Oversight and Reporting
This policy is owned and maintained by the holder of the SMF function, Head of Operations
Compliance with this policy is monitored through first line oversight checks as well as by monitoring key metrics.
Failure to comply to this policy, or failure to report a breach of this policy, either exactly or in spirit, will lead to a disciplinary investigation and this may be followed by disciplinary action. Where the breach of this policy also constitutes a breach of a Conduct Rule, it may also lead to a disciplinary investigation and where it results in disciplinary action.
Where risks and/or issues arise relating to this policy, they will be reported to the accountable SMF holder and to the Head of Operations.
2.2 Related PWC policies and procedures
This policy is designed to be read in conjunction with the following of PWC’s policies and procedures:
- Vulnerable Customer Procedure
- Complaints Handling Policy and Procedure
- Arrears Management and Forbearance Policy
2.3 Training and Awareness
The Training Team will provide timely, training and support to employees ensuring that they effectively fulfil their compliance responsibilities.
- Appropriate compliance requirements are included in training programmes and communications.
- All appropriate PWC employees are required to take annual compliance review of policies and any additional training on the following areas:
- Treating customers fairly
- Data protection GDPR
- Anti-money laundering
- Financial Crime
- The Conduct Rules
- Ad-hoc training is delivered to the relevant teams through either the in-house training team or external providers when a need is identified.
Staff are encouraged and trained to understand and empathise with vulnerability. Staff are trained to pick up on warning signs, risk factors and triggers and to act appropriately.
3 Agreed Definition
The FCA defines a vulnerable consumer as “someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.”
Characteristics of vulnerability may result in consumers having additional or different needs and may limit their ability or willingness to make decisions and choices or to represent their own interests. These consumers may be at greater risk of harm, particularly if things go wrong.
For the purposes of this policy vulnerable consumers are customers and prospective customers whose ability or circumstances require us to take extra precautions in the way that we sell and provide our services to ensure that they are not disadvantaged in any way.
4 Policy
It is our policy to:
- Have in place systems and controls which help us identify potential vulnerable customers.
- Deal with those customers in a clear way, ensuring that we keep sufficient records and that our staff are adequately trained to do so.
- Are fair reasonable and transparent with our approach to dealing with customers in vulnerable circumstances.
- Provide training and guidance to staff on how to identify and deal with vulnerable customers.
- We will provide our customers with various ways or channels to communicate to suit their needs. Our channels include:
4.5.1 Telephone
4.5.2 Email
4.5.3 Letter
- We will not automatically assume that just because someone is vulnerable, that they are unsuitable for our products and services.
- As soon we think we may be engaging with a vulnerable consumer, we should immediately make a record of it and ensure we adhere to this policy.
- When engaging to a vulnerable consumer we will:
4.8.1 Provide additional opportunities for a customer to ask questions about the information we have provided.
4.8.2 Continuously seek confirmation that they have understood the information that has been provided.
4.8.3 Ask if there is anybody with them who is able to assist them and offer them the opportunity to have a family member or friend present during the conversation.
4.8.4 Offer them the opportunity to complete the transaction after a period of further consideration.
- If for any reason we think the customer does not understand what is being offered/proposed, we will not proceed with the transaction and advise them that we will write to them with further information.
- Staff are encouraged to understand the customer’s circumstances and use open ended question and common sense in their approach. We must never pass judgment on a customer’s circumstances.
- The TREAT process is designed to assist staff to manage initial conversations about a customer’s vulnerable situation. (See appendix 1)
- We will use the protocol TEXAS to manage conversations and disclosures effectively which is a key part of creating an environment where customers are confident to disclose.
- Severity and term of vulnerability is not the same. However, we will consider both when categorising vulnerability.
- We will use our internal system to notate and categorise vulnerability which operates on the four vulnerability categories: health, resilience, capability, and life events.
- We will then apply forbearance treatment. Possible treatments may involve the following:
4.15.1 A flexible repayment plan based on an affordability assessment.
4.15.2 A short-term hold/period of up to 30 days.
4.15.3 A long-term hold of up to 3 Months may be applied under certain circumstances.
4.15.4 Account closure/ outstanding hire period write off.
- When engaging and identifying a vulnerable customer, the outcome must not be pre-determined and only considered after the customer service team feel that they have gained enough information to discuss potential flexible and suitable outcomes.
- Possible outcomes may involve the following:
4.17.1 A flexible repayment plan based on an affordability assessment.
4.17.2 A short-term hold/period of up to 30 days.
4.17.3 A long-term hold of up to 3 Months may be applied under certain circumstances.
4.17.4 Account closure/ outstanding hire period write off.
- In all cases, customers who are identified as vulnerable will be sign-posted to sources of help and advice.
- A customer’s account may be temporarily or permanently restricted from future agreements as it may not be appropriate to allow this given the circumstances.
- Examples of when we might restrict an account due to vulnerability include, but are not limited to:
4.20.1 Gambling addiction.
4.20.2 Presenting signs of financial difficulty due to their circumstances (anxious, depression etc.).
4.20.3 Severe mental health issues.
- Where a customer has informed us of a vulnerable circumstance, we may consider writing off the customer’s remaining hire period with us.
- Examples of when we might write off an account due to vulnerability include, but are not limited to:
4.22.1 Terminal illness
4.22.2 Serious depression where the customer is feeling suicidal.
- As per CONC 8.2.8 PWC recognises that most customers seeking advice on debt under its outstanding credit agreements may be regarded as vulnerable by virtue of their financial circumstances.
- PWC does not currently sell/assign accounts to a third-party Debt Collection Agency which have been flagged as vulnerable.
- Where an account has been passed to a DCA prior to establishing vulnerability this account will be recalled and the DCA’s will be informed not to pursue any further activity.
- We will reassess a customer’s vulnerability on periodic basis and/or during each subsequent interaction we have with them.
- We will reassess a customer’s vulnerability and/or their needs on periodic basis and/or during each subsequent interaction we have with them, where it is appropriate to do so, for example where the vulnerability is likely to be temporary.
- The purpose of a reassessment is to find out if anything has changed and if there is anything the business can do to assist the customer further because we know for some types of vulnerability, it can be transient and not a permanent state.
- We will record information pertaining to vulnerability and sensitive data in line with Data Protection regulations, ensuring compliant and accurate record keeping.
- In certain circumstances, we may need consent to record vulnerability. Under the current Data Protection regulations, we must treat “Special category data” or “Sensitive Personal data” with more protection. For example, information about an individual’s:
4.30.1 race.
4.30.2 ethnic origin.
4.30.3 politics.
4.30.4 religion.
4.30.5 trade union membership.
4.30.6 genetics.
4.30.7 biometrics (where used for ID purposes).
4.30.8 health.
4.30.9 sex life; or
4.30.10 sexual orientation.
- In respect of vulnerability, information specifically relating to the customer’s physical or mental health condition will be deemed as ‘special category data/sensitive personal data’ and under the Data Protection Act 2018.
- When recording special category data, we are required to request the customer’s explicit consent. For examples, consent is only required for the name of the health condition, it is not required for the symptoms e.g., dizzy, or nauseous.
- In certain circumstances, we may need to obtain medical evidence/information. It is important to note that medical information should not be requested to ‘prove’ the customer has a medical condition/vulnerability.
- Medical information should be requested to enable us to have a better understanding of the customer’s situation and to enable us to make an informed decision with regards to the next step for the customer.