The Financial Conduct Authority is seeking BVRLA members’ views on the ongoing support for consumers affected by coronavirus with reference to consumer credit, including motor finance.
The call for input relevant for motor finance providers falls into two main areas:
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What support should people get after two payment deferrals?
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What support will be needed post 31 October for those facing redundancy etc.?
The regulator has provided little time to collate input so members wanting to feed into the association’s response should email Director of Fleet Services Amanda Brandon by close of Wednesday 5 August.
Other questions being asked by the regulator include:
Where customers cannot pay/default
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What actions do firms who offer PCH currently take?
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What action will firms take if this happens at scale?
The FCA is asking that firms waive interest on the return to CONC 7. This does not apply to PCH since interest does not play the same role.
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What would an equivalent form of relief be for a PCH customer?
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Asking from a policy and not compliance perspective, are firms giving that relief currently?
Terminations under HP and PCP are different and there is a range of options to exit early. Under PCH this does not exist and there are penalties.
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What are the penalties now? Any indication of the range or insights into this would be useful.
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Are there ways of doing this differently or is this being looked at?
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Are firms waiving or adjusting the penalties to allow people to exit?
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Are there other options out there which firms are using?
