The BVRLA has urged the FCA to work with government in developing a co-ordinated strategy on motor finance forbearance during the COVID-19 crisis.
The association has today responded to FCA’s draft guidance on motor finance, which said that leasing companies must offer a three-month payment freeze or another alternative which is in the best interests of the customer.
While welcoming the flexibility within the guidance, the BVRLA uses its response to make the case for a comprehensive approach from government and regulators that:
- Underwrites the full economic loss resulting from coronavirus forbearance
- Relaxes the constraints of meeting Consumer Credit Act administrative requirements
- Ensures that bank covenants don’t stop lease companies providing forbearance
- Delivers a clear message to consumers that a three-month payment deferral is not the automatic response to every forbearance request
The FCA is expected to publish its final guidance shortly.