Following the announcement that England will enter a second lockdown period similar to that experienced earlier in the year, the FCA to announce further proposals to support consumer credit borrowers impacted by coronavirus.
The regulator will propose updates to their temporary guidance on personal loans, credit cards, motor finance, rent to own, buy-now pay-later, pawnbroking and high-cost short-term credit to support consumer credit customers financially affected by coronavirus.
The FCA have highlighted the importance of consumer credit customers who can afford to continue to make repayments. Borrowers should only take up this support if they need it.
To support those financially affected by coronavirus, the FCA will propose that consumer credit customers who have not yet had a payment deferral under the July guidance can request one. This could last for up to 6 months unless it is obviously not in the customer’s interests. Under these proposals, borrowers who are currently benefitting from a first payment deferral would be able to apply for a second deferral.
For high-cost short-term credit (such as payday loans), consumers would be able to apply for a payment deferral of one month if they haven’t already had one.
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