Given the ongoing coronavirus situation, the FCA is reminding firms of the outcomes they want to see for customers in payment difficulties because of the pandemic.

Firms should strive to deliver the following outcomes:  

1. Customers receive appropriate forbearance that takes account of their individual circumstances.  

2. Firms support their customers through a period of payment difficulties and uncertainty.

3. Firms recognise the characteristics of vulnerability and respond to customers’ particular needs.  

4. Firms have systems, processes and adequately trained staff, with any staff incentives aligned with providing customers with the help they need.  

5. Customers receive the support they need in managing their finances, including through self-help and money guidance.

In addition, the following is expected for credit;

1. Customers are given sustainable arrangements, considering their other debts and essential living costs, which give them reasonable time and opportunity to repay their debt. 

2. Customers are protected from escalating debt once they have entered a forbearance arrangement with a firm based on what they can afford to pay.  

3. Customers are allowed time to consider their options and, if necessary, seek debt advice before deciding on the support they need.

For more information or to discuss your bespoke compliance needs, contact us today or visit www.productpartnerships.com

What does the FCA expect of firms?