The Financial Conduct Authority has proposed draft consumer credit guidance to allow motor finance firms to repossess assets from 31 January 2021 and is considering views following a recent consultation.
The draft guidance makes clear that repossession should always be as a last resort, and subject to complying with relevant government public health guidelines and regulations, for example on social distancing and shielding. Firms are also be expected to consider the impact on customers who may be vulnerable or affected by the pandemic when considering whether repossession is appropriate.
The BVRLA responded to the consultation, which closed on 18 January, welcoming clarity around this issue, acknowledging that this change will allow BVRLA members to work with their customers to ensure that they reach the best solution for their circumstances.
The association has been joined by the Finance & Leasing Association in calling for this amendment agreeing that there are sometimes circumstances when it is in the customer's best interest to repossess a vehicle.