We have updated our guidance to firms on our approach to repossessions from 31 January 2021.
On 13 January 2021, we published updated draft guidance to firms setting out our approach to repossessions from 31 January 2021. This feedback statement summarises the feedback we received on our proposed measures and our response.
The updated mortgages and consumer credit Tailored Support Guidance sets out our expectations on repossessions to ensure that:
- Mortgage firms do not enforce repossessions before 1 April 2021, except in exceptional circumstances.
- Consumer credit firms can repossess goods and vehicles from 31 January 2021. However, this should only be as a last resort, and in accordance with all relevant government public health guidelines, including on social distancing and shielding. Firms should exercise particular care when dealing with vulnerable customers and carefully consider the potential impacts when deciding whether repossession of goods or vehicles is appropriate.
We wanted to act quickly to protect consumers in these difficult times and provide clarity for firms and so did not formally consult on the proposals or produce a cost benefit analysis. To do this would have caused a delay that would be prejudicial to the interests of consumers. However, we invited comments on our proposals and received 18 responses from consumer organisations, firms, trade bodies and individuals.
Action and next steps
The guidance comes into effect on 29 January 2020.
Given ongoing uncertainties arising from the impact of coronavirus, we will keep our position under regular review and will update or amend our guidance, or provide new guidance, if it is required.