FCA to extend coronavirus relief for car finance and high-cost credit
The Financial Conduct Authority (FCA) has proposed extending coronavirus relief measures for consumers with car financing products or high-cost credit until the end of October.
The watchdog this morning set out options for supporting consumers with motor finance or high-cost credit products, such as buy now pay later, rent-to-own or pawnbroking.
The FCA first introduced a three-month payment freeze on the products after lockdown began in March.
The options include a further payment deferral or reducing payments to an amount the customer can afford for a further three months.
“It is vital that people facing temporary payment difficulties because of the impact of coronavirus get the assistance they need,” said FCA interim chief executive Christopher Woolard.
“For those who have already taken a payment freeze and can afford to start making payments, even partially, it is in their best interest to do so, but for those that need help it will be there.”
The FCA also proposed extending the ban on car repossessions it introduced in April until the end of October, to ensure customers can continue to use their vehicles during the Covid-19 crisis.
The FCA is inviting comments on its proposals until 5pm on 6 July, and said it expects to finalise its guidance shortly after.