Unpacking the interplay between organisational factors and the economic environment in the creation of consumer vulnerability

Access to credit is a key enabler of modern life. Yet many consumers face factors beyond their control which sometimes render them unable to borrow from mainstream lenders. This paper documents how firm-related factors determine lending thresholds and shape who is, or is not, a credit-worthy customer. The impact of the 2008 economic recession on lending decisions is explored, an aspect that has been insufficiently discussed even though recessions are cyclical events. Drawing on semiotics and using multiple case studies, the study captures not only which groups were excluded, but also the reasons why. Empirical support is offered for the notion of vulnerability as a fluid state and the role of the timing of decisions as a source of vulnerability is described. Summary statement of contribution: The paper addresses calls for research on consumer vulnerability in different contexts. It complements and extends existing research in its focus on the supply side drivers of financial vulnerability. The findings, which show that the policies and practices of lenders are putting consumers at risk, are highly relevant given current trends for consumers to be given greater responsibility for their financial wellbeing.