Britain to extend pandemic relief in auto finance, high-cost credit

Britain’s Financial Conduct Authority on Friday proposed extending pandemic relief measures for consumers with car financing contracts or high-cost credit until the end of October.

The watchdog set out options for supporting consumers with motor finance, buy-now pay-later (BNPL), rent-to-own (RTO) and pawnbroking contracts who are coming to the end of a three-month payment freeze introduced after Britain went into lockdown in March.

The options include a further payment deferral or reducing payments to an amount the customer can afford for a further three months.

“For those who …can afford to start making payments, even partially, it is in their best interest to do so, but for those that need help it will be there,” FCA interim chief executive Christopher Woolard said.

The ban on repossessions should continue until Oct. 31, the FCA said.

The proposals have been put out to public consultation until Monday, with the watchdog finalising the guidance shortly afterwards.

London