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20 November, 2020 Open access

Financial Conduct Authority confirms updated support for consumer credit customers impacted by coronavirus

New guidance comes into force from 25 November 2020, although lending firms are encouraged to provide enhanced support immediately where they can

The Financial Conduct Authority (FCA) has confirmed updated support for consumer credit customers impacted by coronavirus (COVID-19).

Following a brief 'comment period' after it published draft guidance on 4 November 2020, the FCA has now confirmed the enhanced support that will be available to consumer credit customers experiencing payment difficulties as a result of coronavirus - 

NB - the FCA says that consumers who are struggling with the cost of their overdrafts will be able to request support, such as the waiver of interest, as set out in tailored support guidance published in September 2020.

Commenting on the new guidance, interim Executive Director of Strategy and Competition at the FCA Sheldon Mills said -

‘It is in a consumer’s best interest to only take a payment deferral when absolutely necessary. Those that are able to keep paying should do so.

However, for those continuing to face payment difficulties as a result of coronavirus, these measures will ensure they continue to be able to access much needed support during this crisis. We also want to highlight that tailored support will still be offered and remains the most appropriate option for many borrowers.’

For more information, see FCA confirms support for consumer credit customers impacted by coronavirus.