Regulatory AlertsFS20/11: Further support for consumers impacted by coronavirus: feedback on draft guidance and rules
The Financial Conduct Authority issued final rules and guidance requiring firms in motor finance, buy-now pay-later, rent-to-own, high-cost short-term credit, and pawnbroking to provide temporary payment support to consumers facing coronavirus-related difficulties. The measures extend the application window for deferrals until 31 October 2020 and clarify expectations regarding interest accrual, customer messaging, and engagement with non-responsive customers. These provisions aim to protect consumers from unsustainable debt burdens while balancing the financial impacts on firms and maintaining market integrity during the pandemic.
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