Industry professionals have today (11 September) launched the Vulnerability Registration Service (VRS) to protect customers across different sectors, including utilities.
The VRS is a centralised registration tool designed to help people who consider themselves to be financially vulnerable and in need of help to register their details online, free of charge, and indicate to businesses and organisations they deal with that they require sensitive handling and support.
Legally authorised third parties are also able to register those for whom they care at no cost. It is also designed to combat the associated risks to mental health.
The purpose of the VRS is to empower vulnerable consumers by allowing them either to self-exclude themselves from credit and financial promotions or to slow down the credit application process.
The VRS has already seen 10,000 customers register voluntarily, before its official launch.
Helen Lord, director of the VRS, said: “We believe passionately that consumers have a right to be treated with care and respect in their interactions with businesses and organisations, particularly when their personal circumstances leave them more vulnerable to financial harm.
“We are encouraged by the positive response the VRS has enjoyed from businesses who, like us, can see the benefits that this initiative can bring to help them treat their customers fairly and compassionately throughout the relationship.
“We urge other like-minded organisations to work with us to really help transform the quality of life and peace of mind of vulnerable consumers.”
The new service was unveiled to more than 80 industry professionals including specialists in consumer protection; regulators; third-sector experts experienced in helping the vulnerable collections; and compliance and policy managers in financial services and utilities.
Data from a ComRes poll found that two in five British adults have experienced a life event that left them feeling vulnerable, either financially or socially.
The survey found 54 per cent of the public think businesses definitely or probably should be required to identify whether a prospective customer is vulnerable in order that they can be better protected against harm.
Furthermore 50 per cent believe that businesses should have more regulatory requirements on them to identify vulnerable consumers.
Only 15 per cent of the public agree that businesses do enough to protect their vulnerable customers. Payday lenders and gambling companies were particularly identified as business types that should do more to identify vulnerable customers, with 58 per cent and 57 per cent respectively mentioning them.