The FCA, the Treasury and the Bank of England must ensure their approach to forbearance and support for lenders are developed together.
Commenting on the publication of new proposals from the Financial Conduct Authority (FCA) to extend payment deferrals for another three months in the personal loan, credit card and other revolving credit markets, Stephen Haddrill, Director General of the Finance & Leasing Association said: “Helping customers through this difficult period remains a priority for lenders, but with more parts of the economy reopening, lenders also have a responsibility to transition customers back to regular payments where possible. The FCA’s advice to customers to consider carefully if a further payment deferral is really the best option is important.
“The cost of forbearance is already at unprecedented levels. The FLA has sought urgent assistance from Government to enable lenders to continue to provide affordable lending to consumers and businesses through the crisis and during the recovery. The FCA, the Treasury and the Bank of England must ensure their approach to forbearance and support for lenders are developed together.”