FCA to publish initial supervisory work on consumer credit guidance
The City regulator said it is continuing to monitor how lenders are implementing its guidance on helping customers affected by the coronavirus and is set to publish its initial findings at the end of the month.
Under the regulator’s latest guidance, consumer credit lenders have been allowed to repossess goods and vehicles from 31 January, but only as a last resort and following public health guidelines and regulations when taking repossessions.
“We understand that many consumers will continue to face difficulties as a result of the uncertainty caused by the crisis,” the Financial Conduct Authority (FCA) said.
“We will continue to monitor and supervise how firms are implementing our guidance, to ensure that they continue to provide consumers with support that reflects the challenges that they face. We will publish the findings of our initial supervisory work in this area by the end of March.”
Read more: FCA publishes guidance on vulnerable customers
The FCA also reminded consumer credit and mortgage customers that the deadline for new payment deferrals under the payment deferral guidance (PDG) is 31 March.
Only consumers still in a payment deferral, under this guidance, on 31 March will be able to extend their payment deferral beyond that date. All deferrals under that guidance will end by 31 July 2021 at the latest.
From 1 April, consumers who are newly impacted by the Covid-19 crisis, or find themselves impacted again, should receive tailored support from their lender, the FCA said. This could include short-term support such as a payment deferral.
Read more: FCA classes 27.7m consumers as financially vulnerable
Read more: Consumer credit market remains weak
