The Press and Journal (Aberdeen and Aberdeenshire)
‘Lenders should learn lessons from Covid’
Firms should learn the lessons from good and poor practice shown during the Covid pandemic to help borrowers with the cost of living, according to the City regulator.
The Financial Conduct Authority (FCA) said firms should be encouraging consumers to engage earlier when facing financial difficulties; offering tailored support; letting people who are struggling know about the availability of free debt advice; and making sure fees and charges are fair and only reflect the reasonable costs incurred.
Stop-gap measures, such as payment holidays, were previously in place to help support people who suddenly saw their incomes cut.
This time just 30% of firms the FCA reviewed had sufficiently explored customers’ specific circumstances, which meant repayment agreements were often unaffordable and unsustainable.