FCA proposes the next stage of support for consumer credit and overdraft customers
As the UK works to come to terms, with the current rise in Covid-19 cases, the Financial Conduct Authority (FCA) has published its latest guidance on the support consumer credit and overdraft customers can expect from their lenders. With the previous measures scheduled to end on October 31st we thought we would share these proposals which aim to ensure that firms provide tailored support for users of consumer credit and overdraft products who continue to face payment difficulties due to coronavirus (Covid-19).
The FCA expects firms to:
- Recognise the uncertainties and challenges that many customers will face in the coming months and provide tailored support which reflects their individual circumstances.
- Work with customers approaching the end of a payment deferral to provide support before they miss payments.
- Be flexible and employ a full range of shorter and longer-term options to support their customers to minimise stress and anxiety experienced by customers in financial difficulty.
- Put in place sustainable repayment arrangements which are affordable and take account of their customers wider financial situation including their other debts and essential living expenses.
- Give customers time and opportunity to repay and do not pressurise them into repaying their debt within an unreasonably short period of time.
- Prevent customers’ balances from escalating by suspending, reducing, waiving or cancelling any interest, fees or charges necessary to make that happen.
- Recognise and respond to the needs of vulnerable customers.
Naturally, at Mann Island we will continue to work with customers who need our help and seek to develop an affordable way for them to get their finance back on track as and when they can and not to let their debts or worries spiral.