Context
The standout statement within this article is that “fair process is the foundation of fair outcomes”.
FOS has published an Insights article by Rachel Lam, the FOS Interim Ombudsman Managing Director, about continuing to deal appropriately with customer and complainant vulnerability in a changing financial redress system. Lam expresses her view that conversations about supporting vulnerable customers are crucial and sit at the heart of trust in financial services. There are useful messages for firms within the article.
Key points to note and next actions
- Lam states that vulnerability matters because it is deeply connected to how people experience financial harm, and that it is not inherent to any one group. Rather, it is shaped by circumstance – life events, power dynamics, financial shocks, or structural inequalities.
- Vulnerability is a shared system issue. While FOS does not deliver the Treasury’s or the FCA’s strategies directly, FOS’ role underpins them – by providing a free, independent and accessible route to redress.
- Each resolved dispute or complaint reflects a moment where a consumer believes something has gone wrong – and where the system must respond fairly, consistently and with care. Some would argue that each dispute or complaint represents a moment of vulnerability.
- FOS’ role, and perhaps the role of any complaint handler dealing with a vulnerable complainant, is not to lower evidential thresholds or abandon impartiality. It is to ensure that people can engage meaningfully with the process – that they understand what is happening, feel heard, and are able to participate on an equal footing.
- To support its vision for vulnerability, FOS has strengthened its organisational approach through both a Vulnerability Strategy and, recently, the publication of its vulnerability policy.
- Practically, FOS policy is built around three questions developed by Dr Chris Fitch and the Money Advice Trust (‘vulnerable to what?’, ‘supported how?’ and ‘if not us, who?’.
- Lam also discusses what FOS sees in its casework, and the issues of performance and predictability.