Financial Conduct Authority launches ‘call for input’ on further support for mortgage and consumer credit customers beyond October 2020

Views also sought on what should happen to consumers coming to the end of a second payment deferral under its temporary guidance

The Financial Conduct Authority (FCA) has launched a 'call for input' on whether and what further support should be provided to mortgage and consumer credit customers beyond October 2020.

Having recently confirmed that its coronavirus (COVID-19) temporary guidance to firms on providing payment deferrals for mortgage and consumer credit products will remain in effect until 31 October 2020 - meaning that consumers who have not yet had a payment deferral, or who need further support at the end of an initial payment deferral, can request a payment deferral of up to three months until that time - the FCA is now seeking views on a number of questions including -

• Whether payment deferrals will necessarily be the right solution for many of those still in financial difficulty after six months?
• Is further guidance supplementing its current forbearance rules needed to ensure good outcomes?
• How should firms be recognising and responding to the needs of vulnerable consumers at the end of a period of temporary support?
• What can firms, the debt advice sector and FCA do to ensure customers with multiple debts get the support they need at the end of a payment deferral? and
• Whether its current guidance should be extended beyond 31 October 2020.

Seeking responses in a short time frame - by 7 August 2020 - the FCA says that, if responses show that further guidance is needed, it will publish draft guidance for comment in relation to mortgages in late August 2020, and for consumer credit in late September 2020.

For more information, see Ongoing support for consumers affected by coronavirus: mortgages and consumer credit from fca.org.uk