Regulatory AlertsFS20/4: Temporary financial relief for consumers impacted by coronavirus: feedback on draft guidance and rules (motor finance and high cost credit)
The Financial Conduct Authority issued finalised rules and guidance on 24 April 2020 to provide temporary payment deferrals and forbearance for consumers in the motor finance and high-cost credit sectors affected by the coronavirus pandemic. The document addresses stakeholder feedback on critical operational issues, including credit reference agency reporting, Consumer Credit Act compliance, and the requirement to waive accrued interest if further relief is needed after a deferral period. These measures, which came into effect on 27 April 2020, aim to protect consumers from immediate financial hardship while allowing firms flexibility in implementing support strategies across various credit products.
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