Regulatory AlertsRent-to-own, buy-now pay-later and pawnbroking agreements and coronavirus: updated temporary guidance for firms
The regulator issued updated temporary guidance for firms providing rent-to-own, buy-now pay-later, and pawnbroking services to support consumers affected by the coronavirus pandemic. The document finalizes revised expectations for firms to provide exceptional and immediate payment deferrals, replacing previous guidance with effect from 25 November 2020. To facilitate this support, the regulator proposes disapplying certain rules to ensure the guidance can be effectively implemented.
This guidance applies in the exceptional circumstances arising out of the coronavirus pandemic (Covid-19) and its impact on the financial situation of rent-to-own, buy-now pay-later and pawnbroking agreement customers.
On 19 November, we published updated guidance for firms on Rent to Own, Buy Now, Pay Later and Pawnbroking agreements and coronavirus related to the provision of payment deferrals, which replaces this with effect from 25 November 2020.
Read Finalised Guidance (PDF)
On 24 April 2020, we published guidance setting out our expectation that firms should provide, for a temporary period only, exceptional and immediate support to consumers facing payment difficulties due to circumstances arising out of coronavirus. We published proposed revisions to this guidance on 3 July 2020.
Following a short period for comments, we have finalised our revised guidance which will provide continued support for users of rent-to-own, buy-now pay-later and pawnbroking agreement products.
We are proposing to disapply some rules in order to give effect to this guidance.
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