THE Financial Conduct Authority (FCA) has provided an update regarding consumers struggling with Coronavirus repayment difficulties (30 September 2020).
It announced that consumers could apply for a further three-month freeze up until 31 october 2020, if they continued to be in financial difficulty because of the coronavirus outbreak.
The FCA told consumers:
“Firms should not alter aspects of your Personal Contract Purchase (PCP) or Personal Contract Hire (PCH) agreement in a way that is unfair.
“Additionally, if you are experiencing temporary payment difficulties due to coronavirus and need the vehicle, your motor finance provider should not take steps to end the agreement or try to repossess the vehicle unless you provide consent for the repossession to go ahead.”
Toby Poston, director of corporate affairs, BVRLA, commenting on LinkedIn on the announcement said:
“There’s important clarification from the FCA, which signals another stage in the journey back towards a more normalised motor finance forbearance environment. The vehicle leasing sector has provided a great deal of support to consumers during the pandemic and will continue to do so, but we are pleased that the regulator has listened to the BVRLA call for firms to be given more discretion in how they respond to individual cases.”
Poston added that there was a special breakout session on motor finance in the BVRLA’s virtual conference, Fleets in Charge, with analysis of the implications of the latest FCA announcement.
For more information about the conference, and details about booking, see our story: Motor finance session in BVRLA Fleets in Charge Conference.
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.