On 22 May 2020, we published draft guidance on the fair treatment of home finance customers in temporary payment difficulty as a result of the current exceptional circumstances arising out of coronavirus (Covid-19).
This draft guidance set out our expectations on firms to:
- grant payment deferrals, or other forms of support, to home finance customers in temporary financial difficulty
- ensure fair treatment of customers at the end of any payment deferral period, including by providing the option of a further full or partial payment deferral
- where they need one
- continue to cease any repossession proceedings
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 41 responses from firms, trade bodies, consumer groups and individuals. This document summarises the feedback we received on our proposed measures and our response.
Who this affects
The guidance affects:
- home finance providers and administrators
- authorised firms in respect of unregulated agreements to provide credit that is secured on land.
It is also relevant to obligations that authorised and non-authorised persons might have under general consumer protection law.
Action and next steps
The guidance comes into effect on 4 June 2020.
It expires on 31 October 2020 unless it is renewed or updated before then. We will keep the operation of the guidance under review, having regard to the evolving coronavirus situation and will bring forward further measures if necessary.