The Financial Conduct Authority (FCA) has confirmed temporary guidance for personal leasing customers experiencing financial difficulties during COVID-19.
The details were proposed last week by the FCA.
The financial regulator said it expected funders to provide immediate support to customers facing payment difficulties as a result of the coronavirus outbreak.
The FCA said in its statement:
“It is intended to provide help to those who might be having temporary difficulty in making their finance or leasing payments due to a loss of or reduction in their income (or income of other members of their household) or to those who expect to experience such difficulties.”
The guidance also includes PCP and HP agreements.
The FCA said it would review its temporary guidance at the end of three months.
Christopher Woolard, interim chief executive at the FCA, added:
“We have worked at pace to introduce temporary financial relief tailored for a range of specific credit products. Many firms are already working with their customers, but these measures ensure all consumers affected by the coronavirus emergency can apply for a temporary freeze on their payments.”
The measures commence from Monday, 27 April 2020, with customers being able to request a payment deferral at any point after the guidance comes into force for a period of three months.
James Fairclough, CEO of AA Cars, also commented:
“The FCA’s measures ensure every customer will be treated the same, whoever their lender is, and whatever type of finance plan they are on.
“However it’s important to note that lenders will not make special arrangements automatically. The onus is on drivers to contact their lender before they run into difficulty. Call centres are understandably busy at present, but many providers are offering payment holiday request forms online.”
Full FCA guidance on temporary payment holidays available here
24th of April 2020