Why it Matters - Handling Vulnerable Customers in B2B Debt Collection

Welcome back to our bi-weekly article series: Why It Matters where we take you inside our business to share the stories and values that drive us. At Global Credit Recoveries, our work goes beyond numbers—it's about impact. From the experiences of our partners and clients to the voices of our team, discover the purpose and passion behind what we do.?

We recognise that debt collection isn’t just about recovering money. It’s about addressing real-life situations with sensitivity and responsibility. As an international debt collection agency, we are committed to catering to all customers, ensuring that our approach remains considerate, particularly towards vulnerable individuals on both sides of navigating debt recovery.

The Financial Conduct Authority (FCA) defines vulnerable customers as:

“Someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.”

To effectively serve such individuals, it’s essential to take into account the various ways vulnerability can manifest. These include mental, physical, emotional, cultural, and age-related factors. In this blog, we’ll explore how GCR addresses each of these areas to ensure we’re providing the care our clients deserve.

The 5 Different Types of Vulnerability

In credit recovery, recognising vulnerability is crucial to ensuring that all customers are treated fairly and with care. Vulnerable customers often face unique challenges that, if unaddressed, can lead to further financial detriment. The following five types of vulnerability—mental, physical, emotional, cultural, and age-related—are especially important for us to identify and respond to effectively. By understanding these aspects, Global Credit Recoveries ensures a more compassionate, equitable, and successful recovery process.

1. Mental Vulnerability: Mental health issues can impair judgement and communication, making it harder for individuals to manage their debt both personally or on behalf of their business or employer.? Tailoring our approach to accommodate mental health needs helps reduce stress and confusion, ensuring we offer appropriate and clear support.
2. Physical Vulnerability: Disabilities or health conditions may limit a person’s ability to engage with standard debt collection procedures. By offering alternative communication methods, we can better serve these customers without adding unnecessary strain. For example, a customer with impaired eyesight may struggle to read small print or emails so may prefer to speak over the phone or customers with difficulties hearing may miss important messages or like to speak over email instead of over the phone.
3. Emotional Vulnerability: Life events like bereavement or trauma can overwhelm individuals, affecting their ability to focus on financial matters. Understanding their emotional state and offering flexible, compassionate support helps prevent further distress.
4. Cultural Vulnerability: Cultural and language differences can create barriers in understanding financial processes. By respecting diverse cultural backgrounds and providing multilingual support, we ensure clear, respectful communication, fostering trust and cooperation.
5. Age-Related Vulnerability: Younger individuals may lack financial literacy, while older clients may struggle with technology or cognitive decline. Offering additional guidance and clear, age-appropriate communication ensures that all age groups are supported effectively.

Why it Matters At Global Credit Recoveries, we understand that vulnerability can arise from many circumstances, often in complex and interconnected ways. Our team are specifically trained to approach each situation holistically, ensuring that every customer receives the support they need in a way that respects their personal circumstances. This commitment to responsible debt collection is why it matters—to us, to our clients, and to the individuals we serve.

By taking into account mental, physical, emotional, cultural, and age-related vulnerabilities, we ensure that our practices not only meet regulatory standards but exceed them. We are here to support and protect all customers, offering understanding and care in every interaction with our clients and their debtors.

Treating vulnerable customers with respect and dignity is not just a regulatory requirement - It is the right thing to do. Companies owe money, people pay bills.?