Sajedah Karim, Financial Services Partner at EY, comments: “The FCA’s proposals today – confirming the support available for users of motor finance and high cost credit who face payment difficulties due to Covid-19 – were largely expected and of course welcomed. However, implementation will not be straight forward and will require significant effort on the part of firms to update their systems and infrastructure and deploy people with the necessary level of training – all at very short notice. It’s crucial that firms get this right, ensuring customers receive the advice and support they need when they need it. This is not just about implementation of rules, it’s about achieving fair outcomes and maintaining trust at a time when many more people are vulnerable.
“A large degree of careful management and oversight will be needed to understand if a customer is eligible, and whether the remedy is in the customer’s best interests. Explaining the impact of additional or new payment deferrals will also be key as will contacting customers in advance of the deferral payments expiring.”