This guidance applies in the exceptional circumstances arising out of the coronavirus pandemic (Covid-19) and its impact on the financial situation of consumer credit consumers.
Read Draft Guidance – Consumer Credit and Coronavirus: Additional Guidance for Firms[2]
Today we have announced proposals to ensure that firms provide tailored support to consumer credit borrowers who continue to face payment difficulties due to coronavirus.
We originally published guidance on credit cards (including retail revolving credit)[3] and personal loans on 9 April 2020 and later updated it on 1 July. Publication of guidance covering motor finance and other high-cost credit products[4] took place on 24 April and was updated on 15 July 2020.
The current guidance will continue to provide support for those impacted by coronavirus until at least 31 October 2020 – with consumers able to take a first or second payment deferral. We expect the July guidance to expire on 31 October 2020, but will keep this under review depending on how the wider situation develops.
How to respond
We want to act quickly to continue to protect consumers in these difficult times. We consider that the delay involved in publishing a formal consultation accompanied by a cost benefit analysis would be prejudicial to consumers’ interests. We are therefore not doing so. This is not a statutory consultation. There is no statutory requirement to prepare a cost benefit analysis for guidance.
We would welcome comments from stakeholders on this draft guidance by 10am on Monday 21 September 2020.
Please send your comments to: [email protected]