My pick of the news is the FCA’s temporary relief proposals. Looking to the future, Crystal balls vs rear-view mirrors is an interesting read.
Tweet of the week
— Gareth Noble (@GarNob) April 8, 2020
FCA confirms temporary financial relief for customers impacted by coronavirus FCA: the FCA are confirming that the following products are covered: guarantor loans, logbook loans, home collected credit, a loan issued by Community Development Finance Institution and some loans issued by credit unions, but only where these are regulated. The guidance also applies to firms which have acquired such loans.
- FS20/3 feedback on draft guidance and rules FCA: We are considering what further measures are needed in relation to [high-cost short-term credit, buy-now pay-later or hire purchase (including motor finance) products] and expect to bring forward measures shortly. …
Firms should engage with us at the earliest opportunity in the event that the measures are likely to cause significant prudential or other issues.
- UK loan freeze plan leaves customers still open to arrears letters FT (paywall): highlighting the problem of customers being sent NOSIA letters where the lenders have no discretion on the wording of the letter.
- Car finance payments can be delayed and interest will be frozen for two months Sun: reporting on what some major finance providers are already offering.
- Financial regulator adds UK car loans to household support strategy Guardian: with a commitment from Chris Wollard to propose new measure in the next week.
Coronavirus: Lenders raise interest rates on mortgages Sky: banks have hiked interest rates on many key mortgage products even as the BoE rate has been slashed.
Bank of England eases rules for credit unions during pandemic Yahoo: Where a loan is more than three months in arrears, a credit union can provision for 20% of the loan with immediate effect until January, compared with 35% under current rules.
Government urged to wipe debts for nursing students in wake of Covid-19 Nursing Times: more than 5,550 students from 35 universities in the country had opted to interrupt their studies and take up an extended, paid clinical placement to help tackle the crisis.
Benefits & other news
Cramped living conditions may be accelerating UK spread of coronavirus Guardian: Analysis shows Covid-19 disproportionately affecting those living in ‘the equivalent of Victorian slums’.
Ensuring people do not fall through the gaps in the government’s employment support schemes Citizens Advice: In a fast changing situation, the data we are getting from our advisers suggests that further gaps in the existing package of support will need addressing.
If the cap doesn’t fit? Institute for Fiscal Studies: The cap means that most of these [76,000 working age] families, and some of those who have since lost employment during the crisis won’t benefit at all from the temporary increases in benefits announced by the Chancellor.
Crystal balls vs rear-view mirrors Resolution Foundation: looking in the rear-view mirror is as important as staring into a crystal ball when it comes to understanding where the world of work might be heading beyond the crisis.
Covid-19: we must take urgent action to avoid an increase in problem gambling and gambling related harms BMJ: Working from home may also induce increased usage of gambling apps or websites, in part because boredom stimulates gambling, but also because social distancing and isolating at home will lead to increases in exposure to advertisements via television, online, and social media.