Vulnerable consumers in financial services and access to justice

This chapter explores vulnerability in financial services, with specific reference to consumer credit, where vulnerability is particularly clear in relation to high cost lending. Regulators need both to ‘act robustly’ to prevent harm to vulnerable consumers and to work with companies, which themselves should strive to better understand consumers and their needs. A regulator that has indicated a visible concern for vulnerable consumers is the Financial Conduct Authority. One key regulatory solution for protecting vulnerable consumers is therefore in the objectives themselves, with a greater emphasis on the consumer protection element. The consideration of the individuality of consumer’s circumstances, and the innate vulnerability of all consumers suggests that for real access to justice the availability of redress that responds to these individual circumstances is important. The particular recourse to the unfair credit relationship test is a redress/remedial court based mechanism which allows a consumer to seek support and be resilient to vulnerability exposed through unfair behaviour and/or terms.