FCA proposes help for motor finance and high cost credit customers

Regulatory Updates | 17/04/20

The FCA has today announced another proposed package of measures to directly support consumers facing payment difficulties due to coronavirus (Covid-19). The range of targeted temporary measures cover motor finance and high cost credit agreements, which include: high-cost short-term credit (including payday loans), buy-now pay-later (BNPL), rent-to-own (RTO) and pawnbroking. The proposals are intended to complement the measures already announced by the government to support consumers during the coronavirus pandemic. The FCA is open to receiving comments on its proposals. Stakeholders are asked to respond by 5pm on Monday 20 April. The short timescale for this work is in recognition of the significant impact coronavirus is having on consumers’ finances right now.