The duty of care assessment company, Comentis, has released data showing a significant gap between the number of vulnerable customers automotive firms believe they have and the actual number requiring support.
According to Comentis, firms are identifying less than 1% of their customers as vulnerable, while the true figure stands at 8%. Furthermore, 20% of customers display vulnerable circumstances but do not require additional support.
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This data is based on over 13,000 automotive clinical assessments conducted using the Comentis digital assessment tool. The tool enables car dealerships, brokers, and lenders to consistently identify and support financially vulnerable customers, helping firms meet their Consumer Duty obligations.
Jonathan Barrett, CEO at Comentis, highlighted the “real gap between expectation and reality” when it comes to identifying vulnerable customers in the sector.
“With Consumer Duty well and truly upon us, it’s more important than ever for automotive firms to be fully equipped to identify all signs of customer vulnerability,” Barrett said. He urged firms to take the data seriously, emphasising the need to comply with Consumer Duty requirements.
Barrett acknowledged the complexity of recognising vulnerability, describing it as “a task that could prove challenging even for a fully trained mental health professional.” He recommended that firms consider using third-party technology-driven assessment tools to enhance their processes, stating that combining clinical expertise with hard data can help ensure consistency and objectivity.
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By GlobalDataJohn Honeywood, Group Financial Controller and Company Secretary at TC Harrison Group, shared his experience of implementing Comentis’ tool. “As part of our Consumer Duty review during 2023, we looked at our processes for identifying and supporting vulnerable customers,” he said.
Despite significant training for sales teams, Honeywood expressed concern that some vulnerable customers were not being fully assessed. Implementing the Comentis system, he noted, has allowed the company to “more adequately fulfil our Consumer Duty requirements” and “deliver the right outcomes” for their customers.
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