FSCP responds to FCA consultation to help motor finance and high cost credit customers

Industry News | 21/04/20

its response to the FCA’s proposals to help motor finance and high cost credit customers during the COVID-19 pandemic. The Panel has welcomed the proposals and acknowledges the potential difference they could make for consumers who are experiencing financial difficulties.

The Panel highlights a number of key points with regard to the measures including the need for sufficient resources to ensure appropriate access and fairness, the need for consistent messaging, the potential for adverse impacts on credit files and the need for active monitoring. The FSCP stresses that temporary relief measures must also build on, not replace, existing FCA principles and rules and nor should they create long-term problems. The Panel recommends that the FCA should start work on the next phase of these proposals to include planning for the lifting or extension of the measures and how consumers who have taken the benefit of the measures should be treated in future.