On 2 November 2020, and following the Prime Minister’s announcement of a further month-long lockdown for England, the UK Financial Conduct Authority issued a press release saying it will announce further support for consumer credit customers impacted by COVID-19.
It seems likely that:
– If a borrower has not yet had deferral already because they are unable to make their repayments because of COVID-19, they will be entitled to ask for a deferral. This could last (depending on the product) for up to six months.
– If a borrower (other than one under a high-cost short-term credit agreement) has already had a payment deferral because of COVID-19, they will be entitled to ask for another deferral.
– If a borrower has already had already benefitted from payment deferrals, and are still unable to make their repayments because of COVID-19, they will need to contact their lender for ‘tailored support’.
The FCA reminds borrowers that “consumer credit customers who can afford to do so continue to make repayments. Borrowers should only take up this support if they need it”.