Our guidance published in July 2020 will continue to provide support for those impacted by coronavirus (Covid-19) until 31 October 2020.
On 16 September 2020, we published additional draft guidance on the fair treatment of customers with overdrafts or consumer credit products in temporary financial difficulty as a result of the current exceptional circumstances arising out of coronavirus.
This feedback statement summarises the feedback we received on our proposed measures and our response. This additional guidance set out our expectations on firms to ensure that:
- firms continue to provide tailored support to customers facing financial difficulty as a result of coronavirus
- customers receive appropriate forbearance that is in their interests after consideration of their individual circumstances
- this applies both to customers who have benefitted from payment deferrals under the July guidance and remain in financial difficulty, as well as those who who experience financial difficulties as a result of circumstances relating to coronavirus after 31 October 2020
- this support reflects the uncertainties and challenges that many customers will face in the coming months
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 we received 22 responses from firms, trade bodies and consumer groups.
Action and next steps
The guidance comes into effect on 2 October 2020.
Given ongoing uncertainties arising from the impact of coronavirus, the guidance will be kept under review and if circumstances change significantly, consideration will be given to any further measures that may be needed to support consumers during the ongoing pandemic.