The BVRLA has responded to the Financial Conduct Authority’s consultation on its updated guidance to support motor finance customers facing payment difficulties as a result of Covid-19.
The BVRLA has responded to the latest Financial Conduct Authority consultation on its updated guidance to support motor finance customers facing payment difficulties as a result of Covid-19.
Responding to the FCA’s draft guidance published on Friday, the BVRLA has written to the regulator today to emphasise the need for more support for the sector if firms are expected to continue to offer generous forbearance to consumers.
Both the BVRLA and the Financial Leasing Association are asking for 80% of the losses from forbearance to be underwritten by the government.
The BVRLA made it clear that in all communications the FCA must stress that customers should make their payments if they can.
The association also raised some areas of concern where the guidance is either not clear enough or too prescriptive. This includes their definition of “temporary payment difficulties as a result of coronavirus”, the role of debt counsellors and what information a customer can be expected to share.
The need for firms to be able to repossess vehicles, especially where customers have stopped paying their insurance, was also highlighted.