Home repossessions may take place from April but only as a last resort, the City regulator has said.
A ban is in place on home repossessions except in exceptional circumstances until April 1.
The Financial Conduct Authority (FCA) has published updated draft guidance for firms from April.
Firms will only be able to enforce repossessions if they act in line with the guidance and should treat customers fairly.
The FCA said: “Repossession should only take place as a last resort if all other reasonable attempts to resolve the position have failed.
“Firms will also need to comply with any relevant legislative requirements which may prevent firms from enforcing repossession in certain parts of the UK.”
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The FCA is inviting feedback on its proposals by 10am on March 10.
It said delaying home repossessions can lead to poor customer outcomes as debts mount and therefore it proposes to allow firms to repossess homes when it is fair and reasonable to do so.
The regulator is also reminding borrowers that the deadline for payment holiday applications is March 31.
From April 1, consumers who are newly impacted by coronavirus, or find themselves impacted again, should still receive tailored support from their lender which reflects their individual needs and circumstances.
The FCA said it will continue to monitor and supervise how firms are implementing its guidance, to ensure they continue to provide consumers with support that reflects the challenges that they face. It will publish the findings of its initial supervisory work in this area by the end of March.
By Vicky Shaw, PA Personal Finance Correspondent
Source: Belfast Telegraph
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