Recent regulatory developments of interest to financial institutions with focus on consumer finance. See also our General regulatory news linked in the related materials.

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• COVID-19: additional FCA finalised guidance on consumer credit and overdrafts

COVID-19: additional FCA finalised guidance on consumer credit and overdrafts

Following a short consultation, on 30 September 2020, the UK Financial Conduct Authority (FCA) published finalised guidance setting out additional guidance for firms on consumer credit and overdrafts in light of COVID-19. It also published a feedback statement, FS20/15, in response to its consultation. For further details, see our separate briefings on the consultation: COVID-19: FCA proposes further support for consumer credit customers including overdrafts and the finalised guidance: COVID-19: FCA finalises further support for consumer credit customers including overdrafts.

The guidance came into effect on 2 October 2020 and supplements the FCA’s July guidance (on which, see our briefing: COVID-19 - Further support for consumer credit customers: the FCA's updated guidance).

The guidance covers users of credit cards and other revolving credit (store card and catalogue credit), personal loans, motor finance, buy-now pay-later, rent-to-own, pawnbroking and high-cost short-term credit products and overdrafts.

The measures in the guidance will apply both to consumers who have benefited from support under the existing guidance and continue to face financial difficulties, as well as those whose financial situation may be newly affected by COVID-19 after the existing guidance ends on 31 October 2020.

The guidance will be kept under review and if circumstances change significantly, the FCA will consider further measures that may be needed to support consumers. In addition, the FCA will review the guidance within six months of it coming into effect to determine whether it remains relevant or whether it needs to be amended, withdrawn or replaced.

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