Home repossessions can resume from April after Covid ban expires
Home repossession should ‘only take place as a last resort’
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Home repossessions may be allowed from April but only as a last resort, the City regulator has said.
A moratorium implemented during the coronavirus crisis was extended in January until 1 April after the Financial Conduct Authority (FCA) said consumers “could experience significant harm if forced to move home at this time as a result of repossession proceedings.”
The FCA has published updated draft guidance for firms from April.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 FCA’s guidance - which means repossession should “only take place as a last resort if all other reasonable attempts to resolve the position have failed” - and should treat customers fairly.
The FCA said: “Firms will also need to comply with any relevant legislative requirements which may prevent firms from enforcing repossession in certain parts of the UK.”
From April 1, any potential risk of harm from coronavirus to any customers or members of their household must be considered when enforcing repossessions.
“Where the firm is aware of such risks, repossession should not be enforced until those risks have passed or can be appropriately managed,” the guidance says.
The FCA is also reminding borrowers that the deadline for payment holiday applications is 31 March.
It will continue to monitorhow firms are implementing its guidance, it said.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments