On 3 July 2020, we announced an update to the range of measures providing consumers of motor finance, high-cost short-term credit products, and buy-now-pay-later, rent-to-own and pawnbroking agreements with temporary support in the light of the current exceptional circumstances arising out of coronavirus (Covid-19). The measures broadly reflect the principles already finalised for mortgages, credit cards (including store cards and catalogue credit), personal loans and overdrafts. 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 23 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 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
- buy-now pay-later (BNPL), rent-to-own (RTO) and pawnbroking agreements
- high-cost short-term credit (HCSTC) products
The guidance and rules come into effect on 17 July 2020. We will continue to review this guidance and work with firms, consumer and debt advice groups, and government, to consider what other forms of support may be needed.