Regulatory AlertsFinalised Guidance: Overdrafts and coronavirus: additional guidance for firms
The Financial Conduct Authority issued this finalised guidance to regulate how firms provide tailored support to overdraft customers facing financial difficulties due to the coronavirus pandemic after 31 October 2020. The document requires firms to treat affected customers fairly by offering appropriate forbearance measures, such as reducing or waiving interest, refinancing debt, or establishing repayment plans based on individual circumstances. It further mandates that firms maintain clear processes, ensure staff training, and avoid a one-size-fits-all approach while preventing future over-indebtedness.
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