Earlier this year the Financial Conduct Authority (FCA) introduced new guidance to protect people struggling financially during the Covid-19 crisis. Now, the financial markets regulator has added to the guidance.
The new rules set out to ensure that consumers who have benefited from payment deferrals under the current guidance who still face financial difficulties, as well as those whose financial situation may be newly affected by coronavirus after the current guidance ends, continue to get the support they need.
The measures mean firms will offer further short and longer-term support reflecting the circumstances of their customers. This could include extending the repayment term or restructuring of the mortgage.
Where consumers need further short-term support, firms can continue to offer arrangements for no or reduced payments for a specified period to give customers time to get back on track. This additional guidance will come into force on September 16 2020.
“Some consumers will continue to be impacted by coronavirus in the coming months, or be impacted for the first time,” said Christopher Woolard, interim chief executive at the FCA. “Consumers in these situations will benefit from firms providing them with tailored support.
“However, it is very important that consumers who can afford to resume mortgage payments should do so for their own long-term interests and so that help can be targeted at those most in need.”
Under the guidance published today, firms will prioritise support for borrowers who are at most risk of harm, or who face the greatest financial difficulties. The new guidance reinforces the need for firms to deliver outcomes that are right for individual borrowers rather than adopting “one size fits all” solutions.
Copyright © 2018 RegTech Analyst
