New vulnerability report highlights complexities of issues faced by customers
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The Equity Release Council has revealed its latest Vulnerability Vigilance report to highlight the challenges facing some customers during the equity release process.
It’s good news for customers, as the insights within the report will better inform industry advisers, providers and solicitors about issues surrounding vulnerability – and how to enhance support for homeowners in this category.
To prepare the report, the Equity Release Council examined 316 cases where customers were identified by their legal advisers as potentially vulnerable in 2023.
According to the Financial Conduct Authority, 47% of UK adults have one or more vulnerable characteristics. The Council’s report explored the different reasons as to why the customer was identified as being vulnerable and found:
- Health issues – often due to older age – were the most common reason, accounting for 44% of cases
- Capacity issues was the second most common reason (23%). These include low ability to manage finances, poor literacy or poor English language skills, learning difficulties and low access to help or support.
- Undue influence – when a client is being pushed or manipulated by someone they trust, such as a family member – was the third most common reason (15%).
- Being under duress (5%) was the fourth reason. This is when a client is being coerced into deciding against their will. For example, if someone repeatedly expresses reluctance to arrange a plan, but their spouse or partner insists on proceeding.
- Other reasons included legal vulnerabilities (8%) and suspected criminal activity (2%).
- In almost a quarter of cases (24%), more than one vulnerability was identified, highlighting the complexity of issues faced by customers.