City watchdog makes pledge to borrowers

Finance watchdogs have pledged that borrowers who are in difficulties will continue to receive "fair and appropriate support" after a deadline to apply for a coronavirus-related payment holiday ends tomorrow.

City regulator, the Financial Conduct Authority (FCA) said that, as demand for payment holidays reduces, lenders will provide a range of tailored support based on customers' individual needs and circumstances.

But it acknowledged that some firms have more to do in implementing that help for customers.

Sheldon Mills, executive director for consumers and competition at the FCA, said: "As we move into the next phase of the pandemic, we want to reassure consumers that they will continue to receive fair and appropriate support.

"We encourage those in difficulty to contact their lender to discuss their options.”

He added: "We've been monitoring how firms are providing support and found they have responded well to the challenge of providing tailored support, but there is more to do.

"We've set out where firms need to improve in a report on how they are implementing that support."

The FCA said it has not identified any systemic issues with firms' ability to meet demand from customers seeking further help.

It said all firms it had assessed had vulnerable customer policies in place, and 94% of mortgage firms and 64% of credit companies had reviewed or added to them in light of the pandemic.