On the go: The Treasury Select Committee has today launched a new inquiry into vulnerable consumers’ access to financial services.
The committee will scrutinise whether certain groups of consumers are excluded from obtaining a basic level of service from financial services providers. It will also examine whether vulnerable consumers pay more for financial services products.
Commenting on the launch of the inquiry, Nicky Morgan MP, chair of the Treasury Committee, said: “Vulnerability, as defined by the Financial Conduct Authority, is where someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care."
She added: “With customers expected to take more responsibility for their financial planning and resilience, bank branches closing, and the number of free-to-use ATMs falling, it’s becoming increasingly difficult for vulnerable customers to access certain financial services.
Morgan said the committee will examine the practicality of the Financial Conduct Authority’s definition, the effectiveness of attempts by financial services providers to prevent increased financial exclusion, and whether a premium is placed on products such as travel insurance for vulnerable consumers.
Michelle Cracknell, chief executive of The Pensions Advisory Services welcomed the inquiry: “We do need to ensure that financial services treats vulnerable people with a duty of care. We also think that consideration needs to be given to people that are temporarily vulnerable due to circumstances such as the members of British Steel pension scheme and people making decisions on pension pots.”
The closing date for submissions to the inquiry is Friday 14 December 2018.
