FCA Seeks Views on Further Support for Consumers Affected by COVID-19
FCA is seeking input on the further support that is needed for consumers coming to the end of a second payment deferral under the temporary guidance to firms on providing payment deferrals for mortgage and consumer credit products. FCA is also seeking views on whether it should extend the current guidance beyond the deadline of October 31, 2020. This call for input will be of interest to credit providers, mortgage providers, and consumer groups, with the deadline for response on the call for input being August 07, 2020.
FCA issued various measures to help consumers affected by the impact of COVID-19 pandemic. These include temporary guidance setting out how FCA expects firms to support mortgage and consumer credit customers facing temporary payment difficulties because of the pandemic. FCA had recently confirmed that the temporary guidance would remain in effect until October 31, 2020. However, many consumers that have been given a second payment deferral under the temporary guidance will have deferrals that end from September onward. The purpose of this call for input is to:
- Explore the support still needed by consumers that have already benefited from the temporary guidance but remain in difficulty
- Seek views on a number of propositions that FCA considers should underpin this next phase of support
- Understand the challenges firms might face, understand how they are planning to deliver good consumer outcomes, and identify what further guidance they need
- Seek early views on the factors that should inform the decision on whether to extend the guidance, or provide an alternative form of support, beyond October 31, 2020
If responses show that further guidance is needed, FCA will publish draft guidance related to mortgages and consumer credit. The draft guidance for mortgages will be published in late August, with the final guidance to be published in early September. Additionally, the draft guidance on consumer credit will be published in mid-September, with the final guidance to be published in late September 2020.
Comment Due Date: August 07, 2020
Keywords: Europe, UK, Banking, COVID-19, Credit Risk, Consumer Credit, Loan Moratorium, Mortgage Lending, FCA
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
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