This guidance applies in the exceptional circumstances arising out of the coronavirus (Covid-19) pandemic and its impact on the financial situation of consumer credit customers.
In November 2020, we announced further support for consumer credit borrowers experiencing payment difficulties as a result of coronavirus (Covid-19).
This included guidance for firms on the treatment of consumer credit customers facing repossession before 31 January 2021. We now publish draft guidance setting out our proposed approach to repossessions from 31 January 2021.
We propose that consumer credit firms will be able to 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.
Importantly, we expect firms to exercise particular care when dealing with vulnerable customers and when deciding whether repossession of goods or vehicles is appropriate.
How to respond
We want to act quickly to continue to protect consumers in these difficult times. We consider that the delay involved in publishing a formal consultation accompanied by a cost benefit analysis would be prejudicial to consumers’ interests. We are therefore not doing so. This is not a statutory consultation. There is no statutory requirement to prepare a cost benefit analysis for guidance.
We would welcome comments from stakeholders on this draft guidance by 10am on Monday 18 January 2021.
Please send your comments to: [email protected]