FCA provides information on helping consumers affected by a pandemic
The Financial Conduct Authority has provided an update to assist consumers affected by the coronavirus pandemic.
The guidelines state that companies should only enforce mortgage withdrawals before April 1, 2021 in exceptional circumstances.
As of April 1, firms can enforce repossessions but only if they act in accordance with FCA guidelines and regulatory requirements, which means repossession should only be done as a last resort after all other reasonable attempts to resolve the position failed.
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Businesses must also comply with any relevant legal requirements that may prevent businesses from enforcing a withdrawal in certain parts of the UK.
The FCA asks for comments on these proposals by March 10, 2021, 10:00 a.m.
With regard to consumer credit, the FCA updated its Tailored Support Guidance for credit in January so that businesses can repossess goods and vehicles from January 31, 2021.
However, only as a last resort and in accordance with all relevant government health guidelines and regulations, including social distancing and shielding, when taking possession.
In addition, the FCA would like to point out that the deadline for applications for new deferrals in accordance with the Deferred Payment Directive (PDG) is March 31, 2021.
Only consumers who are still in a deferral of payment on March 31st (according to PDG) can extend their deferral of payment beyond this date.
All postponements under this guidance will end on July 31, 2021 at the latest.
From April 1, 2021, consumers who are newly affected by the coronavirus or are affected again, regardless of whether they had previously delayed payment or not, should be supported by their lender in the form of tailored support according to the TSG, which reflects their person Needs and circumstances.
According to the FCA, this could include short-term support such as deferment of payment, if this is appropriate, but subject to the normal credit report.
Turning to the implementation of the TSG, the FCA said it intends to continue to monitor and oversee how companies implement their guidelines to ensure they continue to provide support to consumers that reflects the challenges they are facing.
In addition, it will publish the results of its first oversight work in this area by the end of March.
Phil Bailey, Director at Twenty7Tec, said: “The Bank of England figures clearly show the continued demand and need for mortgages in the UK. Broker activity in 2021 is already reaching new highs compared to the previous year before the pandemic.
“The growing number of mortgage products available in the market also shows the increased trust among lenders, which has reached its highest level since pre-COVID.
“We anticipate that appetite and increased demand will continue as buyers, moving companies, and even lenders look for another chance to benefit from the stamp duty cut.”