On Saturday, prime minister Boris Johnson announced that England would go into a second national lockdown. On the back of that, the to City watchdog has asked credit businesses to prepare for new guidelines.
The Financial Conduct Authority (FCA) is going to propose updates to its temporary guidance on personal loans, credit cards, motor finance, rent to own, buy-now pay-later, pawnbroking and high-cost short-term credit to support consumer credit customers financially affected by coronavirus.
“It is important that consumer credit customers who can afford to do so continue to make repayments,” the FCA said. “Borrowers should only take up this support if they need it.
“To support those financially affected by coronavirus, we will propose that consumer credit customers who have not yet had a payment deferral under our July guidance can request one.
“This could last for up to six months unless it is obviously not in the customer’s interests. Under our proposals borrowers who are currently benefitting from a first payment deferral under our July guidance would be able to apply for a second deferral.”
The FCA said it would work with relevant trade bodies and lenders on how to implement these proposals as quickly as possible.
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