The Duty and Temporary High Balances
The Duty says we must use all reasonable efforts to detect consumer vulnerabilities. On the liability side of our balance sheets, Temporary High Balances (THBs) are one indicator of potential ‘life events’..
Events may be positive, negative or neutral and you may not know which without further enquiry, but tracking liability-side THBs is one tool you can use to increase your ability of being aware of consumer changes in circumstance.
For MI you will need a quantitative definition of THBs – for example ‘where a retail liability increases by >£X to a total balance in excess of £Y or equivalent’.
Explaining the limitations surrounding the application of the FSCS to THBs is the perfect opportunity to contact a customer – another valuable ‘touchpoint’.
Please let me know if we should discuss, just click reply, or call me on 07799 113535.
I look forward to speaking to you.
Kind regards
Paul
Strictly Confidential
Paul Ashton
Managing Director, KnowCo
+44 7799 113535
paul.ashton@knowco.co.uk
www.knowco.co.uk