The Financial Conduct Authority (FCA) has finalised its guidance on repossessions for mortgages and consumer credit.
In November 2020, the regulator published guidance which meant firms should generally not enforce repossessions before 31 January 2021. On 13 January, it published updated draft guidance for comment. Following the period for comment, it has published finalised guidance, which follows the overall approach of the draft guidance.
For mortgages, the FCA is extending the guidance so that firms should not enforce repossessions, except in exceptional circumstances, before 1 April 2021.
Keith Richards, CEO of the personal Finance Society, said: “We support the FCA’s proposal to extend existing guidance on repossessions so that firms should not enforce repossessions before 1 April 2021.
“We know that, with the development of vaccines, there is a realistic path back to a much more stable economic environment over the coming year. However, this will take time, and it is realistic to give homeowners who are in financial difficulties more time to stabilise their finances before activity over repossessions resumes.”
