Tag: Coronavirus

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HM Treasury publishes answer to MP’s written question on COVID-19 payment issues

Earlier today, on 18 May 2020, UK Parliament published HM Treasury’s answer to Dan Carden MP’s written question on debt collection agencies during COVID-19:

“Debt Collection: Coronavirus

To ask the Chancellor of the Exchequer, what steps is he taking to limit enforcement action by debt collection agencies during the COVID019 pandemic.”

HM Treasury’s response is:

“The Government’s priority is to support as many people as possible who have had extreme disruption to their lives as a result of COVID-19. Debt collection firms are regulated by the Financial Conduct Authority (FCA).

The FCA has announced a series of measures to provide consumers with temporary relief if they are facing payment difficulties during the COVID-19 pandemic. This includes requiring firms to provide consumers with 0% interest on the first £500 of an arranged overdraft for three months and allowing consumers either a 3-month payment holiday or to make nominal payments towards credit cards, store cards, catalogue credit and certain personal loan agreements.”

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FCA updates webpage for firms dealing with complaints during COVID-19

On 7 May 2020, the UK Financial Conduct Authority updated its webpage for firms dealing with complaints during COVID-19. The webpage suggests firms should “take all reasonable steps to ensure as much complaint handling as possible continues through staff working from home, where this can be done fairly and effectively”. But the FCA warns claims management companies should allow firms “a reasonable amount of extra time, beyond 8 weeks, to give a final response before referring complaints to the Ombudsman Service”.

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Payment Systems Regulator updates its webpage setting out its expectations of firms during the COVID-19 pandemic

On 1 May 2020, the UK Payment Systems Regulator updated its webpage setting out its general expectations of payment firms in light of the global pandemic, COVID-19.

The PSR expects firms to “be taking reasonable steps to ensure they are prepared to meet the challenges coronavirus could pose to customers and staff” and “report to us immediately if they believe they will be in difficulty or if circumstances could lead to them being unable to offer the full range of their services“.

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FCA publishes a statement about creditworthiness provisions for regulated credit agreements made under the UK Coronavirus Business Interruption Loan Scheme and the new Bounce Back loan scheme

On 27 April 2020, the UK Financial Conduct Authority published a statement about creditworthiness on the UK Coronavirus Business Interruption Loan Scheme (often called ‘CBILS’) and the Bounce Back Loan scheme (often called ‘BBL’ or ‘BBLS’).

The FCA recognises “the need to make changes to the CBILS scheme immediately“.  The FCA says if firms comply with the relevant requirements of CBILS, then it does not expect them to comply with CONC 5.2A-34 where the lending involves a regulated credit agreement.  But firms must continue to comply with CONC 5.2A for all other regulated lending.

The FCA expects to make a similar statement when BBL is launched.

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FCA publishes finalised temporary guidance to motor finance and high-cost consumer credit firms dealing with customers needing COVID-19 related payment holidays

Earlier today, on 24 April 2020, the UK Financial Conduct Authority published its finalised temporary guidance to consumer credit firms dealing with customers needing COVID-19 related payment holidays under certain regulated credit and consumer hire agreements for motor finance and high-cost credit.

There’s finalised temporary guidance for motor finance, for rent-to-own, buy-now pay-later and pawnbroking and for high-cost short-term credit.

My one page summary is:

If anyone wants a pdf copy, please get in touch: russell.kelsall@TLTsolicitors.com.

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FCA publishes new webpage setting out its expectations for wet-ink signatures in light of coronavirus (Covid-19) restrictions

On 20 April 2020, the UK Financial Conduct Authority published a new webpage setting out its expectations for wet-ink signatures in light of COVID-19 restrictions. The FCA makes it clear its rules do not require wet-ink signatures on agreements. However, firms need to make sure electronic signatures comply with the general law (see our earlier post on the Law Commission’s report on electronic signatures). The FCA reminds firms to consider the Principles for Businesses when using electronic signatures.

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FCA starts consulting on draft temporary guidance to motor finance and high-cost consumer credit firms dealing with customers needing COVID-19 related payment holidays

Earlier today, on 17 April 2020, the UK Financial Conduct Authority started consulting on temporary guidance to consumer credit firms dealing with customers needing COVID-19 related payment holidays under certain motor finance and high-cost regulated credit and consumer hire agreements.

There’s draft guidance for motor finance, for rent-to-own, buy-now, pay-later and pawnbroking and for high-cost short-term credit. There’s also a draft handbook instrument.

My one page summary is:

If you want a pdf copy, please get in touch: russell.kelsall@TLTsolicitors.com.

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Temporary guidance to consumer credit firms dealing with certain customers needing COVID-19 related payment holidays – tips for consumer communications

After the UK Financial Conduct Authority introduced temporary guidance to consumer credit firms dealing with certain customers needing COVID-19 related payment holidays on 14 April 2020 (for more, see our earlier post), I’ve produced a one page summary of tips for consumer communications:

If you want a pdf copy of it, please get in touch: russell.kelsall@TLTsolicitors.com.