High-cost short-term credit agreements and coronavirus: updated temporary guidance for firms

This draft guidance applies in the exceptional circumstances arising out of the coronavirus (Covid-19) pandemic and its impact on the financial situation of high-cost short-term credit customers.

On 19 November, we published updated guidance[1] for firms on high-cost short-term credit and coronavirus related to the provision of payment deferrals, which replaces this with effect from 25 November 2020.

Read High-cost short-term credit and coronavirus: proposed update to temporary guidance for firms[2]

On 24 April 2020, we published guidance[3] setting out our expectation that firms should provide, for a temporary period only, exceptional and immediate support to consumers facing payment difficulties due to circumstances arising out of coronavirus.

Today we have announced proposals which would provide continued support for users of high-cost short-term credit products.

We are proposing to disapply some rules[4] in order to give effect to this guidance.

How to respond

We would welcome comments from stakeholders on this draft guidance by 5pm on Monday 6 July.

Please send your comments to: [email protected]

18/01/2021 : Link changed fixed broken link

First published: 03/07/2020 Last updated: 18/01/2021 See all updates