Mental capacity limitations can result in customers having significant problems with understanding, remembering, and evaluating information about credit products they are applying for, as well as communicating a decision about this.
Where not identified, these can result in detriment including borrowing, lending and contracts that result in ‘later downstream’ financial difficulty and problem debt.
Lending and vulnerability: an introductory guide to mental capacity, authored by Chris Fitch and published by the Money Advice Trust, shows how extending focus on to credit applications firms can reduce the potential risk of detriment and offer support.
This course covers practical steps and actions you can take to identify and support customers with mental capacity limitations (and other decision-making difficulties) during credit applications.
Course outline
Aim:
To enable those working with customers in the financial services sector to identify and provide the appropriate support to customers with a mental capacity limitation.
Who is it for?
This course is designed for those working in financial organisations such as mortgage and loan advisers who regularly come into contact with customers.
What’s covered?
Identify what ‘mental capacity’ and a ‘mental capacity limitation’ are
Recognise ways that a mental capacity limitation can affect a customer’s ability to cope with their finances
Recognise the ways in which a customer with a mental capacity limitation can be identified and supported
Identify the key principles of working with customers with a mental capacity limitation
Identify the key components of the BRUCE tool to be able to apply them
Identify the components of laws and regulations that apply to mental capacity
Benefits to you:
Improve your reputation as a responsible organisation that treats customers fairly
Gain the skills, tools and confidence to handle customers in vulnerable circumstances fairly and consistently
Improve your debt recovery rates and broken repayment arrangements, and minimise the likelihood of additional costs
Meet your responsibilities under the Financial Conduct Authority’s regulatory frameworks relating to mental capacity, contracting and decision-making, and arrears (CONC and MCOB), as well as wider UK law
Supports all parts of your business (lending, customer service, fraud, retention, collections and digital)
Training options
E-learning: a device responsive 30-40 minute e-learning package
Consultancy: we work with you to develop training, policies and principles that take your workplace practices into account