The FCA have updated their guidance for consumer credit and mortgage firms in regards to repossessions. In November 2020, the FCA published guidance which meant firms should generally not enforce repossessions before 31 January 2021.
On 13 January, the regulator published a further updated draft guidance inviting comments from firms on the proposed changes. The regulatory has now published the finalised guidance which follows the overall approach of the draft guidance published earlier in the month.
For mortgages, the FCA are extending the guidance meaning that firms should not enforce repossessions, except in exceptional circumstances, before 1 April 2021.
Consumer credit firms will be able to repossess goods and vehicles from 31 January 2021 as a last resort. The final guidance emphasises that this last resort action should continue to comply with relevant government public health guidelines and regulations, for example on social distancing and shielding. Importantly, firms will also need to consider the potential wider impact on vulnerable customers, including because of the pandemic, when deciding whether repossession of goods or vehicles is appropriate.