Regulatory AlertsFS20/3: Temporary financial relief for consumers impacted by coronavirus: feedback on draft guidance and rules
The Financial Conduct Authority issued finalised rules and guidance requiring firms in the consumer credit sector to offer temporary payment deferrals and interest-free overdrafts to consumers affected by coronavirus. The measures apply to credit cards, personal loans, and other specified products, allowing eligible customers to defer payments for three months while protecting their credit files from worsening arrears status. The regulator clarified that accrued interest should be waived if consumers cannot resume payments, and disapplied certain refinancing rules to facilitate immediate implementation by firms.
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