New standards on vulnerability

The ECB (Enforcement Conduct Board) has published new standards on managing vulnerability in enforcement, which form part of the wider standards for enforcement introduced by the ECB in October 2024 and are adopted by all ECB accredited firms, including us.

We welcome these new vulnerability standards; identifying and managing all aspects of vulnerability is already a fundamental part of the way we manage the cases we are instructed with and is part of our business culture.

We have developed a CILEX endorsed level 3 certificate “Vulnerability and mental health awareness” which all our enforcement agents and welfare team members undertake.

We also have a vulnerability and mental health awareness workshop that we run with our clients to support their teams.

Aim of the standards

The aim is to ensure that enforcement is carried out fairly and ensure that vulnerable persons subject to enforcement achieve outcomes that are no less fair than those achieved for others.

This includes identifying vulnerability and responding in a way that sufficiently mitigates the risk of foreseeable harm, as well as ensuring that the vulnerable debtor is able to pay as much of their debt as possible in a way that is sustainable, in other words in a manner which they can continue to pay without affecting their ability to pay for essentials.

They confirm that vulnerability does not per se stop enforcement; the standards show how firms and agents are to proceed when vulnerability has been identified.

Definition of vulnerability

The standards state that vulnerability may be permanent, temporary or fluctuating and define vulnerability drivers, which can put a person at increased risk of harm, as follows:

• Health - physical ill health, long-term illness, mental health, addiction, low mental capacity, hearing and visual impairment, cognitive impairment and neurological conditions
• Life events – for example bereavement, job loss, relationship breakdown
• Capability – poor literacy or numeracy, low digital literacy, limited financial knowledge
• Low financial resilience – low or erratic income, lack of support, debts

This last driver in particular, can impact on ability to pay. This many mean they can only pay part of what they owe or none of it.

Vulnerability is a shared responsibility

The standards make it clear that managing vulnerability is a shared responsibility across creditors, enforcement firms and individual enforcement agents.

They set out what enforcement firms and enforcement agents need to undertake and also what instructing solicitors, creditors and local authorities need to do to ensure that vulnerable people are identified early and treated fairly.

The standards

You can view the detailed standards for enforcement firms, the standards for enforcement agents and the consultation document on the ECB website.

The separate standards for enforcement agents expect them to use active listening, observe the household context, and recognise indicators of vulnerability, even where it has not been declared in advance, highlighting the need for agents to pause, withdraw or seek guidance where vulnerability is suspected.

Implementation

Enforcement firms will now have until 23rd June to develop plans to implement any changes to comply with the standards across the entire organisation, including systems, processes and training for all staff.

The standards will then come into force in January 2027 and will also be factored into the ECB’s complaints adjudication.