FCA reminds consumers financially impacted by coronavirus of the support available

Payment deferrals allowed firms to deal with unprecedented demand for short-term support very quickly. As the crisis evolves and demand for payments deferrals reduces, tailored support provides a longer-term framework for firms to offer a wider range of options which are tailored to a consumer’s individual needs and circumstances.

The FCA has published finalised guidance for firms, to ensure that mortgage customers whose homes may be repossessed are treated fairly and appropriately, particularly where there are risks of harm to customers who are vulnerable, including as a result of coronavirus.

This means that firms considering or taking repossession action should only do so as a last resort and when all other reasonable attempts to resolve the situation have failed. The FCA has said that firms should also take additional care when taking action to enforce repossession if their customer would be at greater risk of harm from coronavirus if made to vacate the property.

This will provide protection for customers when government restrictions, which prevent firms from enforcing repossession in certain parts of the UK, end - or where they do not apply.

Sheldon Mills, executive director, consumers and competition at the FCA, said: “As we move into the next phase of the pandemic, we want to reassure consumers that they will continue to receive fair and appropriate support. We encourage those in difficulty to contact their lender to discuss their options.

“We’ve been monitoring how firms are providing support and found they have responded well to the challenge of providing tailored support, but there is more to do. We’ve set out where firms need to improve in a report on how they are implementing tailored support.”

The report, which focuses on capabilities to support consumers financially impacted by coronavirus, found that firms have progressed well in implementing the TSG and have acted quickly to build their capacity.

However, it also highlights some areas for improvement, which firms are expected to address. The FCA will continue to monitor firms over the coming months.