19 June 2020
Commenting on the publication of new proposals from the Financial Conduct Authority (FCA) to extend payment deferrals for another three months in the personal loan, credit card and other revolving credit markets, Stephen Haddrill, Director General of the Finance & Leasing Association said:
“Helping customers through this difficult period remains a priority for lenders, but with more parts of the economy reopening, lenders also have a responsibility to transition customers back to regular payments where possible. The FCA’s advice to customers to consider carefully if a further payment deferral is really the best option is important.
“The cost of forbearance is already at unprecedented levels. The FLA has sought urgent assistance from Government to enable lenders to continue to provide affordable lending to consumers and businesses through the crisis and during the recovery. The FCA, the Treasury and the Bank of England must ensure their approach to forbearance and support for lenders are developed together.”
Note to editors:
- In 2019, FLA members provided £140.3 billion of new finance to UK businesses and households. £104.7 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2019. £35.7 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2019.
- For media enquiries, please contact the FLA press office on 020 7420 9656.