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.