FCA proposes three month extension to deadline for requesting consumer credit payment deferrals as a result of ongoing impacts of coronavirus

New measures will enable those who have not yet exhausted their payment deferral options under previous guidance to be eligible to request deferrals up to 31 January 2020

The Financial Conduct Authority (FCA) has outlined further proposals to support consumer credit customers during the coronavirus (COVID-19) crisis, including a three-month extension of the deadline to request a payment deferral.

Introducing updated draft guidance on consumer credit today, the FCA says that it proposes the extension of payment deferrals and other support - to personal loan, credit card, motor finance, rent-to-own, buy-now-pay-later and pawnbroking customers who are experiencing payment difficulties because of coronavirus - so that -

• those who have not yet requested a payment deferral under guidance issued in July 2020 - which required requests to be made by 31 October 2020 - will be eligible for two payment deferrals of up to six months in total if requested by 31 January 2021;
• those who currently have an initial payment deferral will be eligible for a further payment deferral of up to three months; and
• high-cost short-term credit (HCSTC) customers, such as those with payday loans, who have not yet had a payment deferral will be eligible for a payment deferral of one month.

In addition, the FCA says that consumer credit customers who have already benefitted from two payment deferrals (or one for HCSTC), and are still experiencing payment difficulties, should speak to their lender who will be able to provide tailored support in line with the FCA’s guidance to lenders issued on 30 September 2020.

NB - the deadline for comments on the new draft guidance is 10 am on Friday 6 November 2020.

For more information, see FCA announces proposals for further support to consumer credit borrowers impacted by coronavirus from fca.org.uk