On 17 April 2020, we announced a range of measures[1] to provide consumers in the motor finance and high cost credit sectors with temporary support in the light of the current exceptional circumstances arising out of coronavirus (Covid-19). The measures complemented those already finalised for overdrafts, credit cards and personal loans. This Feedback Statement (FS) responds to the views we received.
We wanted to act quickly to protect consumers in these difficult times and, therefore, did not formally consult on the proposals or produce a cost benefit analysis. We consider that the delay in doing so would be prejudicial to the interests of consumers. However, we invited comments on our proposals and received 59 responses from firms, trade bodies, consumer groups and individuals.
We are now publishing our finalised rules and guidance, subject to a small number of changes. These changes clarify the scope of application of the guidance in various areas and address a number of technical issues raised by stakeholders.
Who this affects
The rules and guidance affect a range of firms including providers of:
- motor finance (including personal contract purchase, personal contract hire and conditional sale agreements)[3]
- rent-to-own, buy-now pay-later and pawnbroking[4]
- high-cost short-term credit[5]
Actions and next steps
The guidance and rules come into effect on Monday 27 April 2020.
Over the coming weeks we will review this guidance and work with firms, consumer and debt advice groups, and government, to consider what other forms of support may be needed.
14/05/2020: Editorial amendment Typo correction