Month: November 2020

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We’ve only gone and won ‘Best Law Firm’ at the Car Finance Awards!

So yesterday evening we all sat in front of the television, waiting for the big news: did we win ‘Best Law Firm’ at the Car Finance Awards? After some moments of trepidation, the news came: we won!

This is an amazing achievement for my team: it’s the third year in a row that we’ve won this award. But we never take it for granted. We couldn’t do it without our fantastic team, and amazing clients. We love dealing with those difficult questions, and it’s always very humbling to have loyal clients continue to ask them!

But what did we miss? The obvious things: getting together over a drink, laughing and joking and being with friends. So here’s some photographs from earlier years of the team enjoying the awards:

And, of course, we really missed our traditional drinks in Nottingham.

Maybe next year…..

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HM Treasury publishes new amending regulations changing the form and content of default, enforcement and termination notices

On 11 November 2020, HM Treasury laid before Parliament the Consumer Credit (Enforcement, Default and Termination Notices) (Coronavirus) (Amendment) Regulations 2020 and published an explanatory memorandum.

These regulations amend the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983, which prescribe the form and content of:

– an enforcement notice under Section 76(1) of the Consumer Credit Act 1974;

– a default notice under Section 87(1) of the Consumer Credit Act 1974; and

– a termination notice under Section 98(1) of the Consumer Credit Act 1974.

These changes make significant changes to the form and content of such notices. The changes come into force on 2 December 2020.

By Regulation 9 of the Consumer Credit (Enforcement, Default and Termination Notices) (Coronavirus) (Amendment) Regulations 2020, there is a transitional period of six months from 2 December 2020 during which time a notice under Sections 76(1), 87(1) or 98(1) of the Consumer Credit Act 1974 will be compliant if it complies with the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983 immediately before its amendment on 2 December 2020.

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FCA announces further proposals to support motor finance customers impacted by COVID-19

Earlier today, on 4 November 2020, the UK Financial Conduct Authority published a press release setting out its further proposals to support motor finance customers impacted by COVID-19.

There is:

– a draft updated guidance for consumer credit firms;

– a draft further updated temporary guidance for personal loans;

– a draft further updated temporary guidance for motor finance; and

– a draft Consumer Credit Instrument updating provisions in CONC 6.7 and 7.3.

The FCA proposes:

– those who have not yet had a payment deferral will be eligible for two payment deferrals of up to six months in total;

– those who have had one payment deferral, will be eligible for another payment deferral of up to three months;

– to allow customers until 31 January 2021 to ask for a payment deferral;

– if a customer has restarted payments after a deferral, they are not entitled to another deferral but should receive tailored support if they are experiencing payment difficulties.

– if customers can afford to make repayments then they should continue to do so;

– borrowers should hold off contacting their lender until the enhanced measures are in place;

– lenders should hold off repossessions of goods, unless there are exceptional circumstances, until 31 January 2021; and

The FCA has invited comments by 10am on 6 November 2020.

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FCA publishes call for input for its review into change and innovation in the unsecured credit market

Earlier today, on 2 November 2020, the UK Financial Conduct Authority published a call for input asking for views on change and innovation in the unsecured credit market as part of its review on how regulation can better support a healthy unsecured lending market (called the ‘Woolard Review’).

The FCA has also published a dedicated webpage. The deadline for responses is 1 December 2020.

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FCA to announce further support for consumer credit borrowers impacted by COVID-19

On 2 November 2020, and following the Prime Minister’s announcement of a further month-long lockdown for England, the UK Financial Conduct Authority issued a press release saying it will announce further support for consumer credit customers impacted by COVID-19.

It seems likely that:

– If a borrower has not yet had deferral already because they are unable to make their repayments because of COVID-19, they will be entitled to ask for a deferral. This could last (depending on the product) for up to six months.

– If a borrower (other than one under a high-cost short-term credit agreement) has already had a payment deferral because of COVID-19, they will be entitled to ask for another deferral.

– If a borrower has already had already benefitted from payment deferrals, and are still unable to make their repayments because of COVID-19, they will need to contact their lender for ‘tailored support’.

The FCA reminds borrowers that “consumer credit customers who can afford to do so continue to make repayments. Borrowers should only take up this support if they need it”.