Bounce Back Loan Scheme: FCA guidance for firms on use of Pay as You Grow options

Regulatory Updates | 26/01/21

The Financial Conduct Authority (FCA) has published guidance which aims to help firms understand how they can use and offer Pay as You Grow (PAYG) options under the Government’s Bounce Back Loan Scheme (BBLS). It seeks to ensure compliance with the FCA’s Consumer Credit Sourcebook Chapter 7 (CONC 7), which sets out rules for the treatment of customers who are in default or arrears difficulties. The FCA wants firms that provide PAYG options under the BBLS to understand its expectations before they start collecting debts from customers.