Finance glossary
Vulnerable Customer
Also known as: Customer in vulnerable circumstances, Vulnerability
In simple terms
A vulnerable customer is someone who, because of their circumstances, is at greater risk of harm — for example through poor health, a bereavement, money troubles or low confidence dealing with finances. Firms must take extra care to treat them fairly.
On this page
What does vulnerable customer mean?
The FCA describes a vulnerable customer as someone who, due to their personal circumstances, is especially susceptible to harm — particularly when a firm is not acting with appropriate care. Anyone can become vulnerable, often temporarily.
The regulator points to four broad drivers of vulnerability: poor health, a major life event (such as bereavement or job loss), low financial resilience, and low capability or confidence in managing money or information.
How firms must treat vulnerable customers
Under the FCA’s Consumer Duty and its guidance on vulnerability, firms must understand the needs of customers in vulnerable circumstances and respond to them — for example by offering flexible communication, extra time, or tailored support.
You can tell a firm about your circumstances so it can help, and many firms record support needs. The aim is that vulnerable customers get outcomes as good as everyone else’s, not worse.
How could this affect me?
If you are going through a difficult time — illness, bereavement, debt or a mental-health crisis — telling your bank, lender or insurer means they should adjust how they deal with you and consider extra support.
If a firm ignores your circumstances or treats you unfairly as a result, that can be grounds for a complaint to the firm and, if unresolved, to the Financial Ombudsman Service.
Things to watch out for
- Vulnerability is often temporary — you may be vulnerable at one point and not at another.
- Firms cannot help if they do not know — telling them your circumstances usually unlocks support.
- Support needs you share should be handled sensitively and in line with data-protection rules.
- If a firm fails to treat you fairly given your circumstances, you can complain and escalate.
Know your rights
- Under the FCA’s Consumer Duty and vulnerability guidance, firms must respond to the needs of customers in vulnerable circumstances.
- You can ask a firm to record your support needs and to adjust how it communicates and deals with you.
- If a firm treats you unfairly because of your circumstances, you can complain and escalate to the Financial Ombudsman Service.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- FCA, Guidance for firms on the fair treatment of vulnerable customers (FG21/1) (opens in a new tab). Accessed 22 Aug 2026.
- MoneyHelper, Getting help if you are struggling with money (opens in a new tab). Accessed 22 Aug 2026.