The New Vulnerable
The criteria for identifying vulnerable customers had changed dramatically throughout the pandemic, as has the number of people suffering financial vulnerability. How much of the short-term regulatory guidance and advice, and operational strategies to cope during the pandemic, will ultimately become BAU?
The introduction of payment holidays was a welcome initiative for many, but how many of the 1.7 million payment holidays taken were taken because they could, not because it was necessary. How many consumers fully understood the implications of postponing these payments? Maybe not quite PPI levels but the rush to implement and the variety of products involved not used to including this payment option means remediation work will no doubt be needed.
High-cost short term credit
As the increase in financial vulnerability amongst consumers combines with more stringent lending regulations in this sector, what does responsible lending look like? If more people are pushed towards this type of credit, what options/advice do lenders provide if they can’t help? (Charities/ Citizens advice etc).