COVID-19: New FCA Proposals To Support Consumer Credit Borrowers
In light of recent government restrictions in response to COVID-19, the FCA has issued a declaration on November 2, 2020, announcing its intention to update its temporary guidance on personal loans, auto financing, credit cards, immediate buyback, later payment, lease with option to buy, short credit high-cost term (HCSTC) and pawnshop, to support consumer credit clients financially affected by the pandemic.
The previous temporary FCA guidelines were issued in July 2020 and expire on October 31, 2020. However, the FCA has said it is pleased that companies continue to act in accordance with the July guidelines beyond October 31, 2020. , until she posted more tips. The FCA also reminded businesses of the additional guidance in September, in its COVID-19 update. Web page.
As part of the updated guidelines, the FCA is proposing that consumer credit customers who have not yet had a payment deferral under its July guidelines can request one, which can last up to six. months, unless this is clearly not in the best interests of the client. The FCA also says borrowers who currently have a first deferral of payment under the July guidelines could request a second deferral. Consumers of HCSTC (like payday loans) could request a one month deferral of payment if they haven’t already had one.
FCA will work with a number of stakeholders such as commercial organizations and lenders on how to implement the proposals as quickly as possible. Consumer credit customers who have already benefited from payment deferrals and still encounter payment difficulties should contact their lender to arrange tailor-made support. The FCA has also stressed the need for borrowers who can afford to make repayments to continue to do so.