The FCA has published the additional guidance for consumer credit firms on the next stage of help for consumers. The guidance covers credit cards, loans, rent to own, BNPL, pawnbroking, motor finance and HCST.
The FCA believes that any of those customers who have benefited from payment deferrals but remain in payment difficulties will need more tailored support.
The FCA guidance clarifies the position on:
- when persistent debt provisions have to be reapplied
- when arrears can be classed as arrears and firms’ obligations in respect of these
- what firms must do in relation to refinancing debts
- firms’ obligations in relation to CRA reporting
- the outcomes the FCA are looking for firms to achieve with ongoing forbearance and how this should be implemented
- repossessions under hire purchase, conditional sale and consumer hire
- debt help advice
As with the other Covid-19 related consultations, the FCA are looking for prompt responses to this paper, with responses due by Monday 21 September at 10am.